Ok, I think I found a fix. In the bios, set the computer to "Max Performance". Now use speedstep to throttle the cpu. I've tried this, and it seems to work. You can then set it to max performance on DC also. Or use dynamic switching. Hope that fixes it for you.
Edit:
Ok, just verified it. Just did pretty extensive testing on this. IT WORKS!! Do what I stated above, and everything works fine. BUT, you don't need to set it to full performance in Speed Switch. Ever. It will automatically throttle the cpu to max when it's need. It seems the built in software doesn't have the flexibility of Speedswitch, and interferes with it. Oh yeah, you can't check "System Properties" for the cpu speed when the bios is set to max performance. Get CPU-Z if you want to verify the cpu speed.
Problem Solved