Hi Fuzion! Welcome to the Windows 7 Forums website!
First of all. your power supply way too underpowered for what your doing! You're probably pulling the PSU to over 80% of it's capacity and that's NOT GOOD! You probably have an OEM or inexpensive power supply. I am not being critical here of you or your equipment except one the most critical hardware components for your system is your power supply.
I went to the eXtreme Power Calculator website and they recommend a 284 watt (read this as a 300 watt power supply.) The absolute minimum they recommend is 234 watts. So you can see you're already straining the one you have.
Use Google and check out some different PSU calculator websites to see what results you'll get. You can get a very good make of PSU for under $45 here in the USA. A Seasonic brand (probably one of the best makes there is anywhere) you can get for $42.99 for a 350 watt PSU (the minimum I would use) from Newegg. Remember that it's always advisable to buy the best PSU you can afford for your system.
1. You won't regret it and you'll be able to add more hardware later on.
2. Your system will be more stable, especially under heavy gaming or video use or CPU use.
3. It will last longer and run cooler, which is very important, because to quote one of our other "senior" members: Heat is the bane of all electronics.
Get one that is at least what is called an 80 Plus Bronze Certified PSU, you'll thank me in the long run, believe me.
Second, I notice that your RAM sticks are mismatched. I know you're not going to like what I am gonna say... but your system stability will be affected by that. You have 800 MHz RAM and 667 MHz RAM. The motherboard will default the speed to the lowest setting of RAM sticks. I am not trying to be a wiseguy here but ALWAYS, ALWAYS use the SAME BRAND and SAME BUS speed of RAM and preferably the same series too. If you'll look at my computer specs under my avatar you'll see what I mean. It's best to buy RAM in matched sets too.
This is from the Gigabyte website for your mobo and how to install the RAM correctly... I noticed it's different that most conventional motherboards, even for Gigabyte boards.
To install two memory modules, we suggest that you install them on the DDR2_1 and DDR2_3 sockets, when the DDR2_2 or DDR2_4 socket is populated with a DDR2 1066 MHz memory module, the memory speed will be downgraded to 800 MHz).
If I were you, you would really be better off with 2 sets of matched RAM sticks of PC-8500 1066 MHz. However that is your decision. At least dump the 1 GB of Apogee 667 and get a matched set of Hyniex 800 MHz PC-6400 RAM
Okay... enough of the RAM situation.
Did you do a clean install of Window 7 after the new CPU was installed? THIS IS A MUST! Some will argue that it's not necessary, but it really is because you have changed a major hardware component which affects everything else on the system. The chipset drivers configure themselves differently on a single core CPU versus a Dual-Core CPU.
Do you have the latest BIOS firmware update installed for your motherboard? That may be a factor also. The latest stable BIOS Firmware is the "FC" version for your board.
Did you install the latest up-to-date drivers for your motherboard's North and South Bridge chipsets, sound card or chipset, video card, LAN chipset, etc.?
You have for the North Bridge: Intel® P31/G31 Express Chipset and for the South Bridge: Intel® ICH7 Always install the North and South Bridge chipset drivers first before any other driver, this is very important! This driver combination from Intel is called the Intel INF Driver installation v9.1.2.1007 Dated 4-29-2010 Plus there are a couple of tricks to properly install this driver, which I'll let you know if you're interested.
Your motherboard does support the Intel E7500 Core2Duo CPU. It need the front side bus to be set to a 1066 MHz clock speed. Have you done that in the BIOS?
Have you consulted you motherboard's User Manual. I know a lot of people find to be a little bit "Greek" to them. However once you familiarize yourself with it and how to tweak the BIOS settings and such, you'll find that you can get the system to run much better.
Sorry to run on so much... if you follow some of the above advice, especially for the power supply and RAM, I believe your system will run much, much smoother and with less hiccups.
Keep Me Posted...
~Nibs