That's odd. I found there to be much less lag when walking the streets after the patch.

It still lagged like a motherfucker when it was saving though.

Mine hardly lagged at all in the streets. I had it in the monestary level, but not to bad. Weird. Played without patch.

mine made the game unplayable

I just downloaded the PS3 patch. I had no problem playing before it except slight lag. Now there's no lag at all.