Hi Darren
When you say do you raise the TvsT processor setting I assume you mean my PC processor (In Other Words my intel chip!); if so, the answer is yes. I have 3 settings of which I set it to Turbo (or some such waz!) anyway the highest of the three.
Overclockers recommend the BIOS setting but I'm just using an Asus m/b bit of software (comes with the m/b drivers etc) as a little utility programme. It won't give you big increases as it's very conservative and it suits me at present. If I go for some heavier overclocking I'll alter the BIOS if I feel I need more grunt.
Cutting down the background apps will free up more processor power for TvsT (and any other game actually) but as others have rightly said your system will barely cope with the demands of the game. Having said that I am hoping with everything optimised as much as you can and setting the gameplay options to low there will be a chance you can get it to run. If not succesful it will have to be (IMO) a new system, since upgrading what you have won't be worth it.
Best of Luck with this
Mort