Major Problems with the new SL update, Help!

Ever since the release of SL 1.14.0.1 recently, my computer has been unable to run SL smootly anymore. Here is a list of each of the problems Im having:

1) Whenever I load SL it loads the small loading window, and 4/5 times it then crashes before the main login window can open. Usually I just keep reopening it until it finally loads the login window without crashing. However after a few days / hours of this, it becomes unloadable. Crashing every time. My only solution to this is to re-install the new version each time it gets to this point. I have absolutely no idea why this happens.

2) There are small client side video gltiches where HUD and In world items will flash a rainbow of colors in a very quick random pattern, replacing whatever color it should be. Usually 80% of my hud and 60% of the items I see in world will do this randomly. Keep in mind they do it similtainiously. These flashes of color over them last around 30sec - 2 hours. I would post a video of the glitch in action, but right now SL wont let me log on due to login server handshake issues This is obviously a video gltich of some kind, but I dont know if its my video card, or SL, or a combination of both. Once I can get back in SL I will take a video of it and post it here.

My computers stats are as follows:
Processor: AMD FX-60, MMX, 3DNow (2 CPUs), ~2.6GHz Total 5.2 GHz
Memory: 2048 MB Ram
Hard Drive: 300 GB
Video Card: NVIDIA Geforce 7800 GTX (with 2 monitors hooked up to it)
Operating System: Windows XP Professional SP 2

Can anyone out there help me? Ive never had problems like this with SL before the update, I dont know what to do...

shamless bump

I need some help with this one, anyone?

I am having similar problems, with SL crashing ever since I downloaded and installed the update.

I also agree that it appears to be a graphics card problem. Most often, over the last week or so, the freeze and crash would occur when I started "panning" around a room using the arrow keys.

My system has:

Pentium, 3.02 GHz
1 GB RAM
Windows XP (Media Center Edition), Service Pack 2
NVIDIA GeForce 6800 (256 MB)

Since I kinda self-determined that my problem was caused by my graphics card, I did check and download and install the latest drivers for said graphics card. And now my SL experience has been running WAY more smoothly. I haven't crashed over the last couple of days, and was even able to view a film in-world. So maybe it's a matter of having up-to-date graphics card drivers??