I could of swore I read that the item hang bug was fixed with the implementation of the new dsp code or at least fixed with this commit:
r3608 - dolphin-emu - Google Code
Btw sound is not perfect.. yet, this thread is a bit misleading as even ector admitted himself that sound is still a bit crappy in these games and not perfected yet. It's quite a step forward, it's just not perfect yet.
Despite there being sound it is still slightly broken and some sounds aren't correctly output with the current implementation of the ucode.