I have the same issue. Some people have reported that installing service pack 2 improves the situation. I am currently updating to see if that helps me. I've also read reports of turning off sound acceleration in dxdiag, but I think YMMV on that one.
A work around (kinda) is that this problem happens generally (in my case and in the case of a few others) when in game movies play. After the movie plays and you get the slowdown, it can be somewhat corrected by pausing the game, alt-tabbing to the desktop, and then entering the game again. This may correct the situtation at least until the next in game movie (diplomacy counts as a movie - animated figure heads).
My system:
3 GHz p4
6800GT
1.5 gigs ram
SB Audigy
At least they are making a Mac version in 2006, so worst case I can just wait and try it on a completely different platform
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