well I can´t say too much, but why are you using pete´s d3d plugin instead of that who will work for sure better whit your card I mean, lewpy´s glide plugin, and well, in pete´s d3d have you tried to put on the alpha multipass?
the only FLAWLESS graphics plugin for LoD is Pete's soft GPU, but to you I highly recommend not playing it emulated, you will be severely dissapointed at the end of disc 4 when you get to a spot you can't get by on ANY emulator.
I recall playing lod and finding myself on this message board asking for help and no one could help me with the game freezing. So wait and see if you get passed the sea dragon. but now i read some other posts and maybe i'm not so sure about the freezing getting everbody stuck. nm