[GC] Paper Mario 2 gamebreaking glitch

I tryed playing Paper Mario on Dolphin emulator, first everything looked fine, then however when I got my first partner she was suddenly completely distorted (see Attachment).
Koop isn't any better he is even worse, he ALWAYS is teleported to the middle of the map when I try to use his overworld move (the shell thing), so I cant hit anything which makes it impossible to progress the game.

Specs:
Operating System: Windows x64
Processor/CPU: Intel Core i7-3770 @3.40GHz
Video Card/GPU: NVIDIA GeForce GTX 660
Memory/RAM: 16GB
Dolphin Revision Currently Using: 4.0.2 x64

Anyone know how to fix this?

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