JoJoBond The graphics code isn't the best, but it doesn't have a significant impact on overall performance. Also, it depends what you mean by playing, liquids have a higher impact on performance than powders or solids, and Electrodes don't help. Can you tell us what Frame-rate you get while playing something like dima-gords Destroyable City?
The Powder Toy simulation will only make use of one thread, on a multi-core processor, this equates to about 25% (ideally)
I haven't tried this, because I'm still at work. But there is an old trick to get more performance out of sometimes buggy software. Take farmville for instance, on Multi Core computers this popular game lags bad. The reason for this is, first the game was never intended for multicore systems, second is all the instance's of various items that you could have running on your farm. This can be relative to TPT if you look at it like this. Every item on your Farmville farm is similar to a Particle in powder. The more particles in powder toy the more lag, sames true for farmville.
Now on to my fix.
Run Powdertoy, as Simon suggested above select a decent sized scene, one that is not static, or a scene that has some stuff going on in it. Record your current frame rate results on paper.
Next if your running on a windows system. Like XP, Vista or 7, Right click the center of your task bar at the bottom of the screen.
Select the task manager from the pop up list of items.
Next click on the Processes Tab, look through this tab until you find the Instance of PowerToy that you have opened.
Once you have found this right click on it.
You should see another list of items. Look for Set Affinity, Click this.
Now on the affinity page you should have a list of your cores or threads. Ex. CPU0, CPU1, CPU2, CPU3
Make sure that only CPU0 is checked then click okay. Now go back to the scene you was just playing and see if your FPS has improved.
This works in Farmville by setting the affinity of Internet Explorer to only CPU0 like mentioned above and really increases the speed of the game. Another note is that this fix will have to be done every time you open Powdertoy. And once again I can't promise any results, since I haven't tried it myself.