1.) Run Project 64 at least once.
2.) Navigate to the Config folder within your Project 64 install folder.
3.) Open Project64.cfg. 4.) At the end, paste;
filtering=2
motionblur=False
NOTE: I have no fucking clue how to disable motion blur, it wont even turn off in mupen64plus either, but I don't even know for sure if it is actually enabled or some shit it just says it is but doesn't quite look like it.

More cool settings;
Resetting run count - You will want to do this to remove the shitty nagscreens. All you have to do is change the Run Count setting to 1. Any time you are getting pissed off with it do this again. Fuck these guys I hope Mupen64plus becomes an actual alternative soon but it's Windows port can't even go fullscreen.
Widescreen aspect - Paste aspect=1 to the end.
Remove fog - Paste fog=0 to the end.
Change LOD - I don't really know what it is, but who cares, I put it on precise, apparently is necessary for features like the fade in painting from Mario 64 Peach to Bowser. Paste lodmode=2
at the end.