kindly state more details about what is ur current avg response time and what do u mean by badly affected ? is it performing poorly or it has stopped responding ?

and according to BOL its recommended to leave the MAX WORKER THREADS although there are other recommendations but for most systems its better to keep sql server handle the internal workings.

make it 0 and restart the service and then check the response time.

if problem is not resolved then state the Avg Disk Queue Lenght, Avg Batches and TempDB configurations also.

What are the number of users connected to your system ?