Update:
Installed latest bios (via company website)
Installed latest Audio Driver (via company website)
Installed latest Graphics Driver (via company website)
Installed all Win7 updates (that showed up at least)
Installed latest Direct X.
Still have the problem. I'm at a complete loss as to why Win7 is doing this. The problem seems to be at the worst when I have more than one program open. In other words, if I have firefox running while trying to watch something, the problems come up more frequently. If I try to watch a video via firefox (like youtube), I still get problems. It's not just firefox though, the problem occurs when I have pretty much any program open. It's like my system is overloaded, but I have 4GB of ram, so I doubt that's the case unless win7 is a resource hog (then again, I'm running CA antivirus and I bet it's a resource hog too).
Anyone got any suggestions? Would contacting MS cost money since I just purchased this copy? Would contacting MS even do any good or would I just get some random person who has no clue what they are doing if it isn't on a checklist?