I used the Transversal Server method to host NetPlay and gave him the code to join. I set the buffer to 20 initially (but even 99 buffer had the same problem) and tested it on Super Mario Galaxy (RMGE01).
I get a good 60 fps on the title screen but as soon as I press A+B to get to the File select the FPS drops to an unbearable 7 fps and it's literally unplayable beyond that point. What's worse is that when I checked task manager, it seemed my GPU was hardly working on anything (and the file select when run in normal single player mode makes the GPU load shoot up to 60% as opposed to the measely 20-30% in NetPlay). Also, this issue exists even if I try to run Super Mario Galaxy on NetPlay without my friend connected.
One of Super Marios fans has developed this non-official version of Super Mario 64 on Unity. I surely have good hardware cause in Single player mode I easily hit 60 fps.