First of all did you read the "Tweaking Companion" I wrote a thread about?????
It will give you the knowledge you need to make fixes yourself and the satisfaction that comes with having found that particular fix :)
Anyhoo from what you posted your Video Card is not up to snuff....I remember a 9600 card I had and it just wasn't able to keep up with the demands of this game (HL2)......
As was mentioned earlier try lowering your res. to 800x600.....you should be in VIDEO options where these adjustments are made so while your there put EVERYTHING on LOW...TRUST ME ON THIS!!!!!! The picture of the character you will use will look REAL blurry BUT in game it wont be......
REMEMBER...when you game on-line you want real good FPS.......who cares if it doesn't look pretty it's about Frame Rates, Rune, FRAMERATES! and framerate is KING! Unless you have a higher end Video card so you can play at higher res and all the pretty stuff on then your gonna have to suffer till you get a better card.....
Now this is a quick fix....DEFRAG YOUR HARD DRIVE...it may take a long time but it's worth it....defraging will make sure everything is where it's suppose to be...so the game won't studder and freeze alot on you ....think of being at home and wanting something to drink...would you so in your bedroom looking for it ? Of course not it should be in the Kitchen right?But even the PC knows it goes in the Kitchen but WHERE in the kitchen?? Defragging will put it where it suppose to be ..in the Fridge!
If theres one more thing I'd like to add is color is set to 16bits where it should be at 32...these will make it easy on your eyes and keep you from getting Headaches!! The monitor is Flashing very fast and your eyes may not tell the difference but your brain can and after a lil bit your gonna get headaches ..32bit color will fix that and make your game look better...let us know how it went. :)