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I recently know about this interesting mod and think I would give it a try.
It turns out that I love it and am very surprised to find out my machine can't run it smoothly,
I keep getting "one-off lags" when I encounter enemies.

according to the author of the mod,
it's the loading of the enemy scripts that causes the lags:

my question is,
is this a limitation of the Infinity engine?
or can simply be solved by upgrading my processor?
does anyone manage to run it smoothly?

P.S. my CPU is Intel quad core Q9550
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I highly doubt that more processing power would solve that. BG2 engine simply is not programmed in an efficient way.

In my latest BiG World install (that included SCS 1&2) there were some areas that were so choppy as to be completely unplayable. And I'm talking about mere exploration, not battle.
I am not exactly sure if your "one-off lags" issue you are describing is the same, but for me installing Generalized Biffing mod solved that choppiness completely. Just keep in mind that you should install that mod absolutely last and after that you shouldn't make any changes to installed mods at all.

On the other hand if your problem is a momentary freeze when enemies are created on screen (such as when talking to someone neutral, start battle through dialog and his buddies teleport in) then there's nothing to do about it. SCS scripts are huge and there's simply not a (much) more efficient way to program competent AI in the Infinity Engine.
My guess is that it's simply due to SCS having enormously huge scripts for virtually everyone, as your processor is MORE than fast enough. Normal vanilla BG2 creature scripts aren't any longer than 100 lines for regular monsters, with the longest ones for high-level mages and dragons at around 400. For SCS, though, you can get lots and lots of monsters with multiple triple-digit (or more) scripts each, which takes a while to load. If you have a bunch of them spawning all at once, you can get noticeable lag. The game simply wasn't designed to handle that much going on at once.
Note that SCS is modular partly because installing all its components is indeed very demanding, and often causes lag.
I personally only install about half of the components, and I only lag a bit at the start of battles with multiple enemy spellcasters spawning, or if they fire off spells like project image or simulacrum.