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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.
4) Update your Windows, update your Video card drivers and audio card drivers. Then repeat steps 1-3.
 
Well replacing your video card is a little more extreme then what I had suggested. ;)
 
Yes but if you had updated the driver for maybe they would have. ;)

Then again maybe it was dammaged somehow. :)

Anyway Radeon much better card.
 
Funny they told you that, but okay.