Notebook giving Fatal Exceptions

I need help here, my dad is gonna freak out!!
He has an IBM A21M, with a P3 750MHZ and 128SDRAM, 20GIGs, Crystal Sound Fusion, ATI Rage Mobility 8meg and other specs.
Ever since we put some games on it, now blue screens just occur out of nowhere! We even removed all of them except Midtown Madness 2, but it is inoffensive. First, we get sometimes a BSOD about CWCSPUD, a file I beleive is for the sound card. Then some Fatal Exception OE errors with codes. Then some with no codes, or filled with 0000s, and often when I press any key, it would either jam, give me a huge stretched pic of clouds everywhere (kinda like the Windows splash screen backG), but really stretched and it hangs there. Another one is where everywhere there are small white dots in synched distance from each, and a cursor flashing on the middle right, with a black BGN. It's like DOS, but the cursor is placed elsewhere, and white dots everywhere.
I am thinking it might be DirectX 8, but then again I can't find any symptoms, since sometimes they occur with nothing happening, when shutting down PC (it shuts down nevertheless after the BSOD), and even yesterday when my dad pressed on the left special button of the MS Intellimouse Optical mouse!! I dunno what is going on, but please help!
I have read in the Win Help that blue screens are related to memory chips problems. Is it only memory related? Certainly it can't be software! BSODs are often hardware, and Software are from Illegal Ops...

Anyways please help me, IBM's site provides not much of finding any real help.

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The other day I heard an explosion from the other side of town.... It was a 486 booting up...