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Okay, having did a step by step install of Windows and all of my usual software installs, I have come to the conclusion that it is a codec that is causing the problem. I usually install Divx, Xvid, and the QuickTime Alternative. I only installed Xvid and everything plays smooth. It still seems a little laggy, but I would assume that is the 1 GHz CPU. I will plan on upgrading hardware in a few weeks after a trip I have to take.
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