Yep, currently on the latest version. 32-bit Win7, latest version of Catalyst drivers. Unfortunately, I'm using a mATX mobo and all the memory slots are filled up. Plus, DDR2-800 RAM is kinda a rip off nowadays. I've been told the problem isn't hardware-related, because my processor is more than enough to deal with the load.
But if it is hardware-related, would it help if it's reading off a faster hard drive, say an SSD? If so, I'd rather invest in a small SSD as a temporary location to play my video files from, rather than using money on more RAM.