ATI HD 4800 Underperforming

Hi, I recently built my first pc and the process has been going along quite well. However, with the addition of my new video card - im finding myself a little disappointed. Video games are performing less than half of that of the benchmarks report, I'm barley pulling 15 FPS out of Crysis on medium settings - benchmarks say I should play it on full settings getting in the mid 30s. I admit to be new to this process, but we all have to learn... what am I doing wrong, if anything?

The specs of my computer are as follows:

Windows Xp
Gigabyte MA785G-UD3H Motherboard
AMD Phenom 9350e Agena 2.0GHz Socket AM2+ 65W Quad-Core Processor
4 gigs of ram and a nice 600w power supply.
ATI HD 4870 1gig

I would hope my newly purchased hardware (though definitely not high end) wouldn't be bottlenecking my card this terribly.  

When I start my computer, the video card's indicator lights blink 3 red lights, once "slowly" and then once more that goes away faster. (I cant find any resources on what to see what the indicator lights are trying to tell me)

To show my stupidity on computer building, I have plugged the card into my orange PCi-e slot (the top one), which claims to be 16x. Both pci-e slots claim to be 16x - but the light blue connector is a "4x"? It was confusing to me, but I chose orange, I believe I was correct here...

I tried the drivers included on the disc that came with the card - and then downloaded the newest Catalyst drivers - no performance boost.