Strange bug, i have the game and it works just fine here.
Instead of entering the game, let the game demo run, and see if the same problems happens.
Try setting the CPU to Interpreter.

Are you running the game from the dvd or made a ISO? Maybe it's a damaged dvd.

 

The demo is the same and setting the CPU to interpreter just lowers the FPS without fixing anything.

And I'm using an ISO. DVD itself is in good shape too.

 

You need to find an older GSdx OR upgrade to a DX10 capable OS.
The bug has to do with the shadow drawing in that game, and afaik only affects the dx9 mode.
It's known and we expect this to be fixed some day..

 

DX10 strikes again. This thing won't stop haunting me.

I'm too lazy to upgrade, so I'll look for an older GSdx while waiting for a fix. Thanks!

EDIT: What about the sound? This happens with most games, but the intensity varies from game to game. Any idea what's up?

 

Sound? Well, I see like 38FPS in your screenshots.
You need 60FPS for full speed, at which point the sound will stop slowing down
accordingly to your frame rate.

 

I see. That makes sense. Fortunately, the sound isn't that bad in this game, as the framerate is usually stable at 60FPS from what I can see.

And using an older GSdx seems to work well so far. I have to deal with slightly lower framerate and worse visuals, but it's no big deal.