I have the same issue with the same specs except i have 384 megs of ram.
 
Also have an ASUS k7m mobo

I haven't had any direct experience with that program, but two things ended my stuttering in Baldur's Gate 2. First was a setting in a config file that fixed -some- of the stuttering in win2k, and the second was a fix involving the DirectX control panel proggie and the debug output level (darned buggy SB Live drivers!). I don't currently have a link to that file because I got it weeks ago, but if I can find it, I'll add it to this post.

Please try and find that link. I'd be very interested to see if it helps in other games, such as Mechwarrior 4 and Everquest.

Here, Mike:
 
http://www.nvnews.net/ubb/Forum21/HTML/000005.html

Thanks, but I already knew about that one with the DEBUG problem. I meant the other file he was talking about - unless its the same thing???

Get a decent CD-Rom with high access speed not fake 200x or something. Creative, LG and likes are especially known for their crappy access speed.
 
But if this is out of Question try disbaling DMA in control panel or enabling it depending on you HW.
Also of you have a newer CD make sure it is as UDMA in bios.
Uykucu

I remember reading that regardless of new technology, video from CD-ROM is always played at 4x speed. SO you may have a 1.2 ghz machine with hot drive gear but the video from game cds is only going to play as fast as 4x speed. Add to this the overhead for games you encounter with Win2k and I think you have found your problem. I have searched for a way to increase the caching level associated with CD-ROMS in Win2k but to no avail. Win2k is the superior product but something has to be done about cd-rom performance under Win2k.
 
My Rig:
1.2Ghz Athlon @133FSB
256MB RAM
Cheetah 15k RPM SCSI (boot drive and games)
2 IBM Ultrastars RAID 0(MP3 and bulk storage)
Plextor SCSI CD Equipment
Asus GeForce
SB Live Platinum (Creatives Win2k Drivers SUCK--werent we supposed to have the final versions by this time last year?)

In the settings for some Plextor drives, like for my older UltraPlex, there is a setting to prevent low speed reading. That might help???

Clean your CD-ROM and defrag your hard drive if you havent. If that doent fix it, and youve tried the other suggestions, tough luck. I will agree that if a disk is only ment to be read at a certain speed, it will only be read at that speed.