There was 1.01 patch when I popped it in my ps3 too. Have no idea what it did. Framerate is generally stable when driving around and racing. I wouldn't call it smooth per say, but it is very much playable. Note that I was playing Paradise last night, so the transition from Paradise smooth to this is quite jarring. Especially with colour. Fuck is this game stale. I can't tell what's a gate and what's a barrier when driving. It's all brown.
But I also just played this game single player for 3hrs straight. Maybe I'm partly running off Paradise highs, but I do find this game fun. If I didn't get this game for free (gift card) I'd be chapped though.
EDIT: FWIW, I'm relieved I decided to buy a physical copy. I don't know if this game will suck me in or if I'm better served trading it in for $40-$50, waiting for it to hit $20, and buying it again once some time (and hopefully patches) goes by. We'll see how multiplayer is when I get into it this weekend.