Picasso II decreasing the speed of my 030 card.

[terminator4]

Its using the memory isn't it? (yes).  That memory is not 32 bit and slower.
Setup your workbench t o use fast memory not in graphics (Agnus).  Also, see if you can disable Picasso 2 segmented memory via jumper.
When I owned Picasso 2, I disabled set the jumper to off to obtain proper speedup plus 16 mb RAM.
pointless to use gvp030 with 1mb ram.   it kills me why people never spend the money on gvp memory sticks - they are faster &  performance is noticable...like everything in life there is a price to pay ...  sounds like you are out of memory-thats why its slow...

[terminator4]

When I had a Picasso II on my A2500 setup, I did not (and still don't) like Cybergrafx drivers. Try installing the latest Picasso96 driver and see if that helps speed things up. It is true though that the computer will seem sluggish with an 030, especially when using a lot of colours. It's been advised that an 030 is a minimum configuration when using graphics cards.

Yeah, 68030 with resolution of 1024x768 and 16bit or 24 bit display will be slow.   Especially if redrawing icons etc.  Try going to lower resolution to see if there's performance improvement.  (say 640x480 and 800x600).  The 68030 is slowish redrawing the icons (ok i'm spoiled by 68060 that does the icons in an instant) and any images will eat away from ram too.