Well, I have a pretty powerful system (at least in BGII terms lol). However my game would slow down to a crawl when there were lots of animations or with dragons or pit fiends on the screen. I did alot of searching and had just about given up and figured that it is just part of the game. Then I found something about disabling EAC (environmental audio). This sounded like it might work but I could not find the option in the config utility. I settled for turning off all ambient sounds and static animations. This helped a little but was like a bandaid on a gunshot wound. Then I found something about the powerusers txt in the main baldurs gate folder. It is basically a guide to editing the baldur.ini file. In the baldur.ini file I found the line "Environmental Audio=1". I changed the 1 to a 0 and bingo. It is almost totally fixed. I also added a couple of other lines; "Disable Movies=1" made it so that no movies played (like the movie when you rest), and changing "Sprite Mirror=0" from 0 to 1 cut the animations per char in half because it just flips the image when they turn. I don't know how effective the other stuff was but the big change came from turning environmental audio off.
Hope this helps any of you who have this issue. Now even fighting dragons is smooth as can be.