If CONFIG_PARPORT_PC_FIFO is set to "y" parport driver is using FIFO everytime despite DMA is disabled in BIOS. This causes slow/stuttering printing through parallel port. When I turn DMA on or set CONFIG_PARPORT_PC_FIFO to "n" printer works as expected.
Related Ubuntu bug with more info: https://bugs.launchpad.net/ubuntu/+source/linux/+bug/339752