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Okay let's try some standard things.
1) Rename the AVI folder to AVI_back
2) Set the color depth to 16BIT
3) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.
 
Don't know what volume control you are talking about. I guess some make work eye candy program your sound card installed.
Yes get rid of it, it is needlessly taking up system resources.
Selct the properties and there should be an option to close it down.
Personally I would remove it.
Also make sure any Virus protection programs are completely off.

If none of that works, try a fresh install followed by the latest patch. Then all the things recommended so far, again.