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What board and CPU were you running before?
Sounds like a video driver issue with the 64-bit OS to me. Were you using Win 7 32-bit before?
Also, if you bought that system back in 2008 it's probably about time you replaced the PSU.
i do have rainmeter, it has a system meter. i dont know if that would be the same thing? Going of the meter for rainmeter, anywhere from 50% to a few spikes up to 100% so maybe im not using all of the cpu? even the windows gadget says the same thing.
This would have been better for gaming: http://www.tigerdirect.com/applicat...kwCjCs81CjCE&gclid=CNfTndrPmrQCFYN_QgodBGgA3A
Whenever the CPU spikes to 100% you would probably get lag or studder but the other problems you mention like shearing I wouldn't think should accrue from lack of CPU power. Is your GPU overheating? Try taking the side panel off the case and setting a household fan to blow into the open case - just as an experiment - and see if things improve.