Best configuration for 4.0.2?

Hey guys, I'm having some performance issues in Xenoblade on Dolphin 4.0.2 in HD 1080p. No matter what resolution I run it at, my frame-rates keep stuttering to the point of unplayability.

My build:

CPU: AMD FX-8320 3.5 GHz Vishera
GPU: ASUS GTX 660 OC 2GB GDDR5 DirectCU II
RAM: 8GB Kingston KHX
Motherboard: ASUS M5A97 R2.0
Hard-Drive: Seagate Barracuda 1TB

I'm using the latest 337.5 drivers for my GTX 660

I realize that Dolphin is CPU intensive, but does Dolphin utilize all 8 cores on an AMD fx processor?

I currently have not tried out any other game besides Xenoblade so I am unaware if this game has issues or not. Any custom configurations would be much appreciated

Thanks!