STOP ALL PRESSES, I SOLVED THE PROBLEM
Here's what i did
Played normally till the point where the small prompt shown up on the dudes head, then i paused, hit ctrl alt del (this brought the task manager to your non savvy peeps), under process tab, select DarksidersPC.Exe, right click, set affinity to only ONE of your cores (in case of multi core comp), also i set the priority to Real time
Other thing that Should be accounted for is that i was running the game in 640x480 WINDOW mode, the game resumed on the fight with the rider, i returned all options to normal, game plays smoothly.