To completely rule out an install problem:
unistall everything, including the SH3 folder using a good install program such as Revo uninstall
http://www.revouninstaller.com/
reinstall SH3 and patch it to 1.4b (Some of the newer SH3DVDs are already patched and come without StarFarce)
Then reinstall GWX2.0
I would also check out the Omega drivers, if you can get one for your video card. (google "Omega Drivers"}.
Finally, before you lode the game, stop all unnecessary programs and processes. FSAutostart is a free program to do this and there are several other very low cost programs also. This will free up RAM.
Make sure you have virtual RAM set to "let windows decide".
If this doesn't work, I don't know enough about computers to help you any further, and some guru with have to take over helping.
If it works, please post back, as this might help somebody else in the same fix.