Hey shrimply.
I see a few things already that need to be sorted out.
You need BIOS update.
GPU update.
The driver disk you used basicaly has outdated drivers and software but it was good enough to get you up and running.
Let me copy and paste these items in and tou can see the issues pritty plain babe.
Update driver and software to latest version:
http://support.amd.com/us/gpudownload/Pages/index.aspx
You also need to go to your mainboard makers site for downloads for your system.
Tip 314 : Video Adapter : ATI Radeon HD 3600 Series (120 SM4.1 725MHz, 512MB DDR2 2x405MHz, PCIe 2.00 x16) : Video BIOS is too old. Check for an update.
Tip 2221 : Video Adapter : ATI Radeon HD 3600 Series (120 SM4.1 725MHz, 512MB DDR2 2x405MHz, PCIe 2.00 x16) : Driver is not certified.
Tip 319 : Video Adapter : ATI Radeon HD 3600 Series (120 SM4.1 725MHz, 512MB DDR2 2x405MHz, PCIe 2.00 x16) : A refresh rate of at least 75Hz is recommended. Increase it if possible.
Tip 314 : Video Adapter : ATI Radeon HD 3600 Series (120 SP 725MHz, 512MB DDR2 2x405MHz, PCIe 2.00 x16) : Video BIOS is too old. Check for an update.
Check settings in BIOSA AND DISK MANAGEMENT:
Warning 3103 : ST3500418AS (500.1GB, SATA300, 3.5", 7200rpm, NCQ, 16MB Cache) (C:) : Acoustic Management enabled. Peformance may be impaired.
Update driver:
arning 710 : MIDI Output Devices (Playback) : Microsoft GS Wavetable Synth : Driver may be obsolete. Check that it is the latest version.
Install lates SP:
Warning 1320 : Latest service pack has not been applied! Consider updating.
Have you activated:
Warning 1316 : This copy of Windows contains Product Activation Technology.
Please trawl for updates:
Tip 1324 : .NET Framework 1.1 not installed. Install to run legacy .NET applications.
Update drivers and software:
Tip 2221 : Direct3D 9 Devices : ATI Radeon HD 3600 Series (\\.\DISPLAY1) : Driver is not certified.
Error : DirectSoundCapture Devices : Primary Sound Capture Driver : DX-DS E88780078
It just appears to me you need to install service packs,driver updates,software and security fixes.
The below link is a refrence guide for you on how to and what these sort of things mean.
http://www.sisoftware.net/index.html?dir=&location=qa&langx=en&a=