As you might notice, I haven't updated this site in years. It exists now merely for archival purposes. The design and coding (yes, I actually used FrontPage 2000 back then) is not representative of my current abilities.

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Download and install this Microsoft patch from the Downloads section . This also can fix the problem where blocks show up in place of text.

Try "memturbo2" at this site: http://memturbo.com . Also, adding more RAM to your system can noticeably increase performance. If you have 128 MB or less of memory, I suggest buying more. I have 256 MB of RAM, and it works great. Anything over 512 MB is probably overkill for just playing games.

Defragment you hard drive by going to Start->Programs (All Programs for XP users)->Accessories->System Tools->Disk Defragmenter

Obviously, purchasing a new, better video card will increase your performance. I recently bought a GeForce2 Ti for only $50, and it runs GTA3 like a charm. NOTE: Make sure you buy a card that works with your computer! Many computers with integrated graphics chipsets do not have AGP slots, so you will need to buy a PCI video card. AGP is a dedicated graphics card slot. It is found on your motherboard usually as a short black or dark brown slot right above all the PCI slots.

Download the latest drivers for your video card. You can find out what kind of video card by going to the Start menu, clicking "Run...", and type in DXDIAG.  Then go to the "Display" tab.  It should tell you what type of video-card you have. Go to your video-card manufacturers website and search their driver downloads archive for an updated driver.

Game Settings: What You Should and Shouldn’t Do…
Resolution: Obviously the lower the resolution/color the less demanding the game will be on your system.

Draw Distance: Why is this even in the settings? IT DOESN’T EFFECT YOUR GAME SPEED. It’s like it has no functionality at all so go ahead and crank it all the way up. (ElBazo noted that there is a minor slowdown between the minimum draw distance and maximum, but in most cases it's unnoticeable.)

Trails: Turn this off…

Frame Limiter: Unless you just can't stand "only" 30 FPS, turn this on. Many people report that it prevents occasional stutter and slowdown.

Frame Sync: Keep it off. Doubtful you can match GTA3's FPS to refresh rate on your monitor anyways...

Disc 2: A Problem Within Itself…
GTA3 uses Disc2 to store its sound effects, etc, under the Audio directory, meaning it’s constantly reading the CD during game play. This is a disaster for those of you who have a slow CD reader (like me). You’re probably wondering “How could this be? My CD drive’s read speed is 32x, so that should be enough, but I still experience problems!”

Well, there’s also copy protection on both of the GTA3 CDs, which slows down the read speed a bit. Still don’t think that’s the problem? Think about this. Each sound is stored on the CD. When you’re in the game, there’s a lot of sound, right? People yelling, car engines’ revving, the radio, gunshots, tire screeches, etc. Well, every single one of those sounds has to be read from the CD. So if there are, say, 32 sounds being played in the game, GTA3 has to read all of those sounds at the same time from the CD. Now are you convinced?

What you can do:
Copy all contents of Disc2 to the main GTA3 directory (say Yes to overwrite files).

2.) Download the No-CD patch from the Downloads section (NOTE: WinAce is required) or if the link is down go to www.gamecopyworld.com and try the patches out until one finally works for you (Make sure you follow the directions closely.)

(NOTE: Since you bought the game in its official, retail box, it’s perfectly legal for you to have a no CD crack)

If you have DirectX 8.1, download it and re-install it. Microsoft secretly updated it. Um…YES I’m serious.

For the people who are running Win XP Pro/Home. Grand Theft Auto 3 works extremely well if you run it in Win98/ME compatibility mode and disable visual themes (all set in properties by right clicking on gta3.exe and clicking "Properties...", then going to the "Compatibility" tab). This has been reported to nearly double your speed.

UPDATE: If you are using Win XP and you have the No-CD crack or the Save Game Fix, and GTA3 is asking for the 2nd CD, only choose "Disable visual themes" and not "Run in Win 98/Me compatibility mode." Note that you will still get quite a performance increase when only the "Disable Visual themes" option is selected.

First Patch Attempt Released: What Rockstar Should Have Done!
Theirs a patch located at http://www.gta3.net titled “Cheff Patch Beta 2” in the patches section. The site is in German or something so a translation is needed. And here it is below.

Die zweite Version von Cheffs' User-Patch. Es wurde einige Optimierungen vorgenommen und die Anzahl der Dateien verkleinert. Der Patch erzielt durch das Ersetzen von verschiedene Dateien von GTA3 durch die von Zanzarah, das die gleiche Engine benutzt, auf manchen Rechner erhebliche Geschwindigkeitsgewinne. Bitte unbedingt vor der Installation die Dateien drvmgt.dll, Mss.dll und gta3.exe und den gesamten mss-Ordner aus dem GTA3-Verzeichnis sichern!

Translation:
"The second version of Cheffs ' user Patch. Some optimizations were made and the number of files was made smaller. The Patch obtains by replacing different files of GTA3 by gains in speed substantial of Zanzarah, which uses the same engine, on some computer. Please absolutely secure before the installation the files drvmgt.dll, for Mss.dll and gta3.exe and the entire mss file from the GTA3-folder"

NOTE: This only seems to increase framerate by up to 3. Also, keep in mind that this cannot be used with the No-CD crack.

3d Analyze: The Alleged Quick Fix
Download 3d Analyze from
the Downloads section. Supposedly what this program does is force GTA3 to do software Transformation and Lighting rather than
hardware Transformation and Lighting. Supposedly this works for some

Hacking: Time Cycle Dat File
You can download a new dat file located here at the
the Downloads section . Replace the file in your GTA3\data directory with this one, and of course, backup the original first!

NOTE: This file shortens your draw distance dramatically, which you shouldn’t have to put up with since you bought the game, but I guess it’s good enough for the time being.

Kill all unnecessary background tasks by right clicking icons on your system tray (the area in the bottom right of your screen) and clicking the option that will close them.  Or, to close background tasks that are not found in the system tray, do this:

Win9x Users:
Close your background applications, use CTRL+ALT+DEL. This will bring up close programs. END TASK on each item except for EXPLORER and SYSTRAY. You will need to repeat for each item. Now when you do this give about 8 seconds in-between hitting END TASK and doing CTRL+ALT+DEL. If you do not you will reboot your system and will have to start this task all from the beginning. If another window pops up just hit END TASK again. After all but EXPLORER and SYSTRAY are left, Then start your program up.

2K/ XP users:
To close your background applications, use CTRL+ALT+DEL. This will bring up the Windows Security Box and you need to click on the "Processes" Tab. END TASK on each item except for EXPLORER.EXE as that is Windows itself. You will need to repeat the above step for each item. Now when you do this give about 8 seconds in-between hitting END TASK and doing CTRL+ALT+DEL. If you do not you will reboot your system and will have to start this task all from the beginning. If another window pops up just hit END TASK again. After all but EXPLORER.EXE is left, you can then start your program up. Once you reboot the system, all of the items you just removed will be back.

Note (XP and 2k users): You CAN close "explorer.exe" also, but the Windows interface will disappear. To run GTA3 from this point, click "New Task..." and run GTA3 from there. Close the Task Manager window before GTA3 starts up.

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Sources:
Rage3d Forums
Rageunderground Forums
Of Course gta3forums.com (primarily this post)