Strange Lagging Issue

[Keltiks]

Often times regardless of where I am I run into the following problem, however this occurs more often than not in crowded areas. The first problem is my music will start to repeat. It will play about 5 seconds, then skip and play the same 5 seconds over again. During this time, I can no longer hear noises nor see any animations. If I check the AH for a certain category, like weapons for example, the window appears completely blank. However I can read anything that happens like synthing results, /tells, lschat, I just can't hear anything. It seems like my computer literally gets stuck trying to load something. Then all of a sudden (it seems at random intervals) the music will unskip, all the noises and animations that should have happened while I was frozen happen all at once is rapid succession. I've noticed this happens quite often in battle, for example I will use Spirits Within. At this point my computer freezes and my character freezes like I'm terroized. However I can use all my abilities and see them occur in the text, but the accompanying sound effects and visuals don't happen. Usually around 30 seconds later I finally see the WS and all the noises/animations that occured while frozen all happen at once.

I made a post about this a month or so ago but I don't think I accurately described the problem. Any ideas on what this could be? I am thinking it is either an issue with RAM.

Another key thing to note is if I alt tab while my computer is going through a freeze, I can't open anything, it is like my entire computer locks up, not just FFXI. I used to not have this problem in the past so I don't understand why it would be happening now if it was RAM. Would defragmenting help?

[Koga]

Sounds similar to this: http://www.bluegartr.com/forum/viewtopic.php?t=16656

[Keltiks]

Yes similar, however if you read both problems closely, I feel there is a different issue behind each one. I am not completely freezing and skipping. When my computer is lagging, I can still read text, it is not a complete freeze.

For reference i have an Intel 1.6 GHz processer with 1 gig of RAM.
Some lame ass Intel video card called "Mobile Intel 915GM/GMS, 910GML Express Chipset Family" (yes its a laptop)

I just checked disk fragmentation, my drive with FFXI does not need to be fragmented however one of my drives was all over the place. Defragmenting now to see if that is the issue.

http://i5.pbase.com/o6/26/637226/1/7...ypS.defrag.PNG

FF is on the D drive, but I guess a fragmented C drive could still cause the issue?