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PC Upgrade suggestions!

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Smeg's response was not incorrect, but definitely over the top. The key here is that your PC was running well with XP. In my experience, any machine that runs fast with XP, even with lesser hardware than yours, will run Win7 at least as well, if not better. I took one of my 'old' whitebox systems home that I'd built for CAD at work. An Athlon X2-5000+ with 4GB RAM and a GeForce 9500GT. It runs more than fast enough to satisfy me, and I've seen similar performance with other systems with slower processors and half as much RAM.

My guess is that you have a system driver that's not working properly. Another flag is that you have 4GB of RAM installed, but only 3GB are showing as available. You're either allocating 1GB to your video card (way more than what's needed) or there's some sort of problem with a RAM chip or the board itself. This probably wasn't an issue with XP, since it only really addressed 3GB or that RAM anyway.