Computer Freezes Completely When Playing Some Games (Oblivion,Hitman2)

Okay this has been pissing me off so much and I don't know what to do. I recently bought the game oblivion on steam and it's been unplayable. The game will freeze my entire computer: sound stops, can't ctrl alt del, can't alt tab, can't do anything what so ever. I must restart my entire PC.

It doesn't happen in the tutorial part before you leave the prison either. Only after you finally leave the sewer and enter the actual game. I just played the tutorial for an hour and within 30 seconds of walking around outside the game freezes. This it what it looks like. I couldn't get a close up picture of the entire screen cause I'm on my television.

The little diagonal jagged lines pop up on the screen everywhere (the rounded weird looking lines are just an affect my camera gave the picture)

The thing is, this happens on this game, hitman 2 (steam bought) and battlefield bad company 2 (bought from direct2drive). No other game on my computer does this, heck I play crysis 2 with all settings on high and the game runs great. Here are my specs:

Windows 7 Pro 64 bit
Intel Core 2 Duo 3 Ghz processor
4 GB of RAM
GeForce GTS 250 graphics card

Any ideas? I wanna play this game again so bad. Also, I'm at about the last level in Hitman 2. For some reason it doesn't happen as often in that game and sometimes I can play it for hours with no problem. I'm posting this here because I believe it might be a graphics card problem but I have no way of knowing for sure.
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  1. It looks a defective card to me.
    What's your PSU ?
    Also make sure you have the latest GPU drivers installed
  2. My PSU is 650w. The newegg link doesnt work for some reason but its exact name is NZXT Precise PRC-650W-AP 650W ATX 12V V2.01 SLI Certified CrossFire Ready Active PFC Power Supply. I have the latest patches for all my games cause steam automatically grabs them and I also have the latest drivers for my vid card. I'm gonna try to clear out all the dust from the case and see if that helps the overheating part. Gonna be such a pain in the ass if I needa get a new PSU.
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