It's most likely some driver or directx related problem.
Or, like irish said, some application(s) in the background.
For me SH3 runs well on a Athlon XP 1.6GHz, 1GB RAM and a Radeon 9800 card.
So as 2 GB of RAM should be better, especially with GWX installed, it's not absolutely necessary as I can tell from experience.
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