yup. sound and vid drivers. update asap.
reduce your hardware and sound acceleration.
hardware for your mouse:
r/clikc on yr desktop
choose "settings" tab
click "advanced" in lower rt
choose the "performance" tab
slider is on full
move it left one notch (see? it specially says for mouse problems)
clikc "apply", "ok"
sound acceleration:
Start button
Run
type in dxdiag
pick "Sound" tab
see slider for "hardware acceleration"
slide it one notch to left
(like the mouse fiz above, you can go back and slide it another notch if the first doesn't work)
V***V
con't forget to upgrade all your drivers also. sound and video drivers must all be DX8.1 compliant, or they won't work.