Could it be another issue of the game depending on the framerate? I have not tried it myself for Toy Story 2, but I know DXTory works wonders for limiting framerates for PC games, recently tried it on Lego Island wrapped in dgVoodoo2 and it works how it should with the right framerate value.

I have not tried this yet, but I have my doubts that limiting the fps would work, since when unchecking the "Force Vsync" box in dgvoodoo, Toy Story 2 runs at maybe 20-30 fps and in slow motion, and the boss fight is still bugged.

But I should maybe give it a chance either way; the slow-motion behavior of the game while not forcing vsync may the that the game still maintains a rather high fps, but the game engine gets confused while there's no vsync activated (I should find a way to display the games actual fps).

Edit: Forcing vsync would actually in theory limit the fps to the screens refresh rate. I have mostly played this game on my TV via hdmi, and then I don't get more than 60fps max with vsync on.

Bumping this thread as I have a solution.

The CPU limiting method used to work in the past, but (presumably) because CPUs are much more powerful now than during the days of Windows 7, this method no longer works.

I heavily limited my CPU to the point I was only getting about 5 to 10 frames per second, which allowed me to get Zurg down to about 10% health (after about 30 minutes of playing and failing terribly) but near the end of the battle he just became impossible to defeat.

So I ended up using memory hacks to give myself an absurdly high amount of lives (you can use a Toy Story 2 trainer for this), then I was able to use the 60FPS method of cornering him, spinning, jumping then not having to worry about falling off and wasting all my lives. It took about 2 minutes to defeat him this way.

This is kind of cheating but there is basically no other way to get past him. I would recommend only giving yourself around 20 lives, because now I am stuck with over 100 lives and a glitched life counter. It would take forever to deliberately kill myself over and over to get back down to the normal 9 lives… but given that I rarely die in normal gameplay, I would never reach game over anyway so I guess it's okay.