Have you thought about updating your graphics driver? If the one in your specs is the one you're using, it's old as the hills. That driver is for GeForce 4 cards and lower.
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Abit IN9 32X MAX WiFi,
Core2Duo E8500@3.6Ghz,
Xigmatek HDT S1283 "Rifle" CPU cooler
4GbOCZ2P800R22GKDDR2PC6400,
AntecEA650PSU,
Western Digital Caviar Green WD5000AADS 500GB 32MB Cache SATA 3.0Gb,
LiteOn DH-20A4H DVD/RW
XFX Gforce 8800GTX 768Mb 384 bit GDDR3, Accelero Extreme 8800 Cooler
ApeviaBlackXCruisermidtower
TrackIr 4
Saitek Cyborg Evo
CH Pro pedals
Dell ST2410 24-inch Full HD Widescreen Monitor
Windows XP 64