Editing Video Hangs

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EDITING VIDEO...
I'm having trouble viewing preview playback in Power Director 11. I'm using layered time lines and fx and it skips, stops ect. How can I best upgrade my current system?

Windows 7 Professional 64-bit
AMD Phenom II X4 955 (oclocked 3.8 ghz)
Gigabyte GA-MA770-UD3
GeForce GTX 650
8 gb RAM 800 MHz
WD 500 gig HD black

Thanks

 

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Upgrade ok... but can I get by with adding another 8 gigs of ram and bumping up my video card? I'm doing a couple of videos (low budget) for a music project, otherwise the pc works great. So I don't want to rebuild completely unless absolutely necessary. Generally, what are the most important components for playback with layers and fx??