Quote: "thats not so bad. would my 512mb GeForce 7950 do fine with it?"
Should handle it perfectly fine at 1280x720 with all settings on High.
Quote: "The weird thing is that I have a fairly decent PC with an 8800 GTS 320 mbs 2 gigs of ram, and the game lags sometimes, I know it's not the PC cause every other game works fine on this PC"
Probably due to the setup of your system, I have one here (well actually it's at work atm) that is just basically the most powerful collection of hardware I could get my hands on. It suffers from seriously horrible lagging issues in all games that require streaming data.
Half-Life 2 is the worst, where it'll run at a nice 200fps+ then when going into a new area of enemies; it will pause for a second or so with huge amounts of Hard Disk reading. Then continue.
Happens in Gears of War but not as much.
It is an extremely horrible issue that plagues Vista mostly due to it's indexing system, which is wonderful if you happen to want to find something quickly however you want to play games and the pagefile kicks in when it shouldn't.
Right now I have my pagefile on most of my systems set-up so it reads from a specially partitioned hard drive mount that has all forms of indexing, recycling, temporary, readyboost, caching, etc.. all firmly turned off.
Something you can do to subside this issue in the short term though, is once you launch the game open the task manager; switch the application to have high-priority (this will mean it's needs will come above everything else) and then check virtualization.
Once this is done it runs in effectively exclusive mode. You can also enhance this by setting up a configuration file that disables themes and running it in full-screen mode.
Virtualization really does the most enhancement for reducing lag though, as it makes sure it only runs using physical memory and the higher priority status than everything else makes sure those resources are available exclusively. Background applicatins suffer but honestly while I'm playing on Games for Windows Live games, I still use my messenger account - so people can talk to me using that everything else imo is pointless being active in the background.