"photo shop cs 2 loads really slow and hangs up, or locks up." that has nothing to do with the videocard as far as i know . Rendering yes , but loading the program up , no!
Now if that happens after you just reinstalled your OS , you have a major problem . And you do mention "other applications"
I advise you to :
Reinstall your hardware on the motherboard .
First format your HDD ( also check the SATA cable , if you have a spare one - replace it , make another clean OS install , install the latest drivers . Next step is to test your components . Try to power your sistem without additional fans , fan controllers , card readers , dvd-writers , whaterver you may have and won't use . Boot with just one RAM stick .
Also very important , make sure your BIOS detects the correct ram timings . After that test every component individually , all at standard clocks .
For the CPU and RAM you can use Orthos , MEMTEST , you can find some links on the forum.
Keep an eye on the temperatures . Stress the videocard and make sure it is not artifacting . If your system reboots or freezes during these tests , we could maybe find out what component might be faulty / unstable ...
If nothing works .... i don`t know .. lockups , poor performance and/or low framerates in games can mean anything so it's really hard to tell what's wrong / what component is faulty if that is the case ...
What you are describing is not just a CS:SOURCE problem ... i remember playin DOD SOURCE with my AThlon64 / 256MB video card in 1280 maxed out with 2x AA and AF and still getting 50FPS+ , and that with 30 guys running around and shooting . So it's not a software problem ... your specs are more than enough to run any source engine based game maxed out "in normal conditions" ... i'm waiting for your reply , maybe we figure it out ...