"I feel your pain." I have just come through the same difficulties and was on the verge of giving up. My PC matched the limited specs you give above; see full sys info, below. I had been trying to use the same machine for Internet and recording, it wasn't working, and I was gonna go postal.

What worked for me after all was the dedicated Digital Audio Workstation (DAW)--a PC devoted to music production. It's the same four-year-old machine, but with a clean install of XP Pro on a new fast hard drive and nothing else but other music apps on board. After sorting out numerous issues, mainly drivers and getting programs to talk to each other, it works beautifully. Note that my XP is so stripped down that it almost looks like Windows 95. There is no eye candy whatsoever.

I can tell you from recent experience that music and non-music apps (read: antivirus, firewall, antimalware, printer driver, instant messengers, scheduled tasks, system utilities, MS Office Fast Find, program updaters, screen savers, etc., etc., etc.--anything that stays in memory and is likely to take up processing cycles unexpectedly) don't play well together and aren't going to, no matter the tweaks. A Word From The Wise.

It sounds like you've been to blackviper.com to see about unnecessary services and followed those pointers. Try this: If you have Spybot S&D or the free Glary Utilities, look up either's Program Startup manager, which allows you to de-select unneeded programs from Windows startup. Doing so immediately removes them from memory and keeps them from starting with Windows. (Notable exceptions are QuickTime, HP printer drivers and Java update and a handful of others; them you have to tell a few times.)

If you really can't afford $300 or less for a machine to dedicate to Internet ops--a refurb or a Wal-Mart emachine, say, with a KVMA switch so they can share the same keyboard, mouse, monitor and speakers if necessary--consider a dual-boot system. Two installs of the same or a different OS on two partitions of the same drive. Maybe a $3 Ubuntu Linux for the Internet side, if you're any kind of a hacker and feeling frisky; maybe two installs of the same XP. There are people here who have done that and can tell you how.

But the best advice I can give you from my own experience is to dedicate a PC to the purpose of making music.

R.