This was extremely helpful. I had tried so many different things to fix the cutscene lag and the framerate and this made 2 of my all time favorite games run crisp again. Thanks for the help!
How I fixed my game was that everytime I booted up the game, it kept using the integrated graphics card instead of my nvida causing the frames to drop by a lot. So I went into the control panel settings of my graphics card and changed KH to run off the nvida graphics card and it fixed the frame rate and it runs so smooth.
This fixed my issue, my NVIDIA setting was set to "auto-select", it was running my game with the integrated graphics instead of the GPU, good looking out!