I did clear my cache, de fraged and set vid settings down, and have a vastly improved frame rate of 23 to 45 depending on where or what I am doing, (was at 4 to 17) and as usual if I look up the rates shoot up to 75 which is normal. So cleaning things up and modifying settings does help.
It may help with general performance issues, but not with the very topic of this thread so far. I do not have any FR problems at all, but even with settings dumbed down to stoneage, I get the "hit-sprite" freeze. It makes no difference if i run this with 256, 512 or 1024 textures, sliders to minimum, sounds settings tweaked ect...
If it is of any help, my DXDiag info:
------------------
System Information
------------------
Time of this report: 3/24/2008, 04:43:02
       Machine name: GOLGATHA
   Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_qfe.070227-2300)
           Language: German (Regional Setting: German)
System Manufacturer: MSI
       System Model: MS-7369
               BIOS: Default System BIOS
          Processor: AMD Athlon(tm) 64 X2 Dual Core Processor 4200+,  MMX,  3DNow (2 CPUs), ~2.2GHz
             Memory: 2048MB RAM
          Page File: 218MB used, 3721MB available
        Windows Dir: E:\WINDOWS
    DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
     DxDiag Version: 5.03.2600.2180 32bit Unicode
------------
DxDiag Notes
------------
  DirectX Files Tab: No problems found.
      Display Tab 1: The file nv4_disp.dll is not digitally signed, which means that it has not been tested by Microsoft's Windows Hardware Quality Labs (WHQL).  You may be able to get a WHQL logo'd driver from the hardware manufacturer.
        Sound Tab 1: The file P17.sys is not digitally signed, which means that it has not been tested by Microsoft's Windows Hardware Quality Labs (WHQL).  You may be able to get a WHQL logo'd driver from the hardware manufacturer.
          Music Tab: No problems found.
          Input Tab: No problems found.
        Network Tab: No problems found.
--------------------
DirectX Debug Levels
--------------------
Direct3D:    0/4 (n/a)
DirectDraw:  0/4 (retail)
DirectInput: 0/5 (n/a)
DirectMusic: 0/5 (n/a)
DirectPlay:  0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow:  0/6 (retail)
---------------
Display Devices
---------------
        Card name: NVIDIA GeForce 7600 GT
     Manufacturer: NVIDIA
        Chip type: GeForce 7600 GT
         DAC type: Integrated RAMDAC
       Device Key: Enum\PCI\VEN_10DE&DEV_0391&SUBSYS_06301462&REV_A1
   Display Memory: 256.0 MB
     Current Mode: 1280 x 1024 (32 bit) (60Hz)
          Monitor: LG L1953TR(Digital)
  Monitor Max Res: 1280,1024
      Driver Name: nv4_disp.dll
   Driver Version: 6.14.0011.6921 (English)
      DDI Version: 9 (or higher)
Driver Attributes: Final Retail
 Driver Date/Size: 12/5/2007 01:41:00, 5773568 bytes
      WHQL Logo'd: No
  WHQL Date Stamp: None
              VDD: Nicht zutreffend
         Mini VDD: nv4_mini.sys
    Mini VDD Date: 12/5/2007 01:41:00, 7435392 bytes
Device Identifier: {D7B71E3E-40D1-11CF-DB6C-3B2600C2CB35}
        Vendor ID: 0x10DE
        Device ID: 0x0391
        SubSys ID: 0x06301462
      Revision ID: 0x00A1
      Revision ID: 0x00A1
      Video Accel: ModeMPEG2_A ModeMPEG2_B ModeMPEG2_C ModeMPEG2_D ModeWMV9_B ModeWMV9_A 
 Deinterlace Caps: {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive 
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt
 retch 
                   {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive 
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt
 retch 
                   {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive 
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt
 retch 
                   {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive 
                   {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt
 retch 
         Registry: OK
     DDraw Status: Enabled
       D3D Status: Enabled
       AGP Status: Enabled
DDraw Test Result: Not run
 D3D7 Test Result: Not run
 D3D8 Test Result: Not run
 D3D9 Test Result: Not run
-------------
Sound Devices
-------------
            Description: Sound Blaster Audigy
 Default Sound Playback: Yes
 Default Voice Playback: Yes
            Hardware ID: PCI\VEN_1102&DEV_0007&SUBSYS_100A1102&REV_00
        Manufacturer ID: 1
             Product ID: 100
                   Type: WDM
            Driver Name: P17.sys
         Driver Version: 5.12.0001.0608 (English)
      Driver Attributes: Final Retail
            WHQL Logo'd: No
          Date and Size: 3/17/2006 16:10:00, 1163264 bytes
            Other Files: 
        Driver Provider: CREATIVE
         HW Accel Level: Full
              Cap Flags: 0xF5F
    Min/Max Sample Rate: 100, 192000
Static/Strm HW Mix Bufs: 65, 64
 Static/Strm HW 3D Bufs: 65, 64
              HW Memory: 0
       Voice Management: Yes
 EAX(tm) 2.0 Listen/Src: Yes, Yes
   I3DL2(tm) Listen/Src: No, No
Sensaura(tm) ZoomFX(tm): Yes
               Registry: OK
      Sound Test Result: Not run
---------------------
Sound Capture Devices
---------------------
            Description: Sound Blaster Audigy
  Default Sound Capture: Yes
  Default Voice Capture: Yes
            Driver Name: P17.sys
         Driver Version: 5.12.0001.0608 (English)
      Driver Attributes: Final Retail
          Date and Size: 3/17/2006 16:10:00, 1163264 bytes
              Cap Flags: 0x41
           Format Flags: 0xFFF