It one of GSs bad points in the review: "The Bad Annoying hitches cause the game to freeze for a few seconds at a time, but it only seems to start happening after playing the game for several hours"
When you're in the dashboard and you load up BioShock, immediately hold the LB and RB bumpers and keep them down until the 2K logo has dissapeared, this should remedy the issue.
I experienced the same thing when arriving at the third level or so. Apparently, you can (as an above poster suggested) hold the RB and LB which will clear the cache and make it run smoother. There was, however, a recent update to the game which fixed the problem for me. If that update didn't fix it then I'm not sure...
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