for some reason if someone comes around a corner and shoots, it starts choppy, or when explosions are near sometimes, just with the action only....

doesnt matter if i play on high medium or low graphics...

my system:

AMD64 dual core 3800+ 2Ghz
2GB DDR
Soundblaster Audigy 4 pro
BFG nvidia 7950GT 512MB

I have all my drivers updated!

Your system should play fine.
I know of a few very similar configurations that run Vegas 2 with no problem.

First make sure you don't have programs running in the background.

Then check your video options and make sure you have antialiasing turned down or off.
Antialiasing is hard to run and will bring a small system to its knees.
Reduce resolution and see if that helps.
Turn vertical synchronization off.
Most games will run better with it off.

It also sounds like it could possibly be a sound issue.
You said drivers are up to date, so maybe double check these.
You could also disable sound if the other things don't work and see if that makes a difference.


Maybe try one thing at a time until you find what works.

Good luck!!!
I know it isn't fun to play with choppy graphics!!