I am encountering performance issues while playing Mafia
From within the game, press escape and choose Audio/Video OR from the Main Menu choose Audio/Video and then select LOW from the top of the screen where it says Video. You have the option of choosing LOW, MEDIUM or HIGH video.
This will lower the Draw Distance, Level Of Details, Level Of Blood, In game Effects and Sounds and Structures and Particles,
Also from the installation folder of Mafia, run the SETUP.EXE file. This will load the video and sound configuration options for the game, please try the following settings:
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Turn Off Anti Aliasing
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Lower the screen resolution
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Change the bit depth to 16
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Lower the texture quality to LOW DETAIL
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Turn off Lightmap quality
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Turn off triple buffering
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Enable Software Mixing Only
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Disable the Clip Always Option
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Enable Hardware Transform and Lighting
Once done click Save and Exit and try the game again.