60hz is not even remotely acceptable if you have a crt screen..
If your monitor has 60hz refresh, fix it asap. The flickering is not healthy for you especially if you're using a big screen.
I reckommend that you set your refresh rate to a minimum of 75hz, which is the limit advised by work ergonomy professionals. The eye gets strained from anything less than 72hz and individuals like me get a headache from anything less than 85hz.
Other than that, with those system specs you shouldn't have to disable anything before going to the game. That setup should be able to handle two AH's easily with framerates capped.
If you get stuttering, try a different display driver version. Also reload your sound drivers. Do you have Intel application accelerator installed?
Any problems at setup like yours indicate that there's something very wrong with the system, not only that you have XP as OS.