Vista - Vista/Steam performance issue

I'm having an issue with all steam games where I see low FPS

No matter what game I run I will get about 25 FPS. I've tried different settings with the same results +/- a few FPS. Games are very choppy and for the most part unplayable.

Here are the current settings
Resolution - 1024x768
Model - Medium
Texture - Medium
Shader - Low
Water - Simple
Shadow - Low
AA - None
Filtering - Bilinear
Vertical Sync - Disabled
High Dynamic - None
AMD 9500 Quad 2.21 GHz
Ram 4GB
Vista 64 Business
178.24 geforce winvista 64bit Driver Version 7.15.11.7824
2x GeForce 8800 GTS ... Tried in SLI and Single with same results +/- 5 FPS

I also ran the DirectX End-User Runtime Web installer that put me to 9.0c. Same Results

Do you have any non steam games and if so do they have the same issue?

I did try Bioshock it it ran well. Funny thing is I ran the DX update via the web and it installed the new DX. I Then restarted and ran Bioshock and the game ran the DX installer...

Still having the same issue with anything on the halflife 2 engine

I don't load anything with Steam anymore. It was too buggy.

I have had close to zero issues with steam.