What's the fastest processor that will work with your mobo?
From my experience, Killer Instinct should be running full speed or close to it with what you have, and Tekken stops having sound skips around 3Ghz. You need a lot more than that to run Blitz. Using a 64 bit OS and MAME64 makes a big difference for certain games, Blitz in particular.
I always use Black Viper's guide to disable all services that aren't needed, including networking.
http://www.blackviper.com/ (under popular content)
I'm still using xp32 on my main setup because I have some accessories that 64 bit drivers don't exist for. It has a 2.9Ghz Athlon X3 and runs Tekken full speed, but IIRC, for Tekken 3 or Tag, I'm running a clone that ran faster.
I've run similar Athlon X2 and Athlon X3 processors and believe the third core does make a noticeable difference. Presumeably by handling overhead. I settled on 3.4Ghz Athlon X3's as the budget sweet spot for my driving cab and current build. (I buy stuff piecemeal from Newegg when I see a component cheap)
I'm not really recommending AMD here, they were just the best value at the time. I'd fork over the money for an i5 if building today.
Just had a run with Blitz on my new cab that runs a 3.4Ghz X3 w/Vista 64 (for DirectX11).
It's fully playable, but has some slight sound issues.
There are some Shmups that don't run full speed in Demul.
Most of them run full speed using Makaron, but a couple of them feel like they need a few more Ghz.
It always irks me when people steer new builders toward processors too slow to even run Tekken.