FPS Problems?

My fps is 2.0 - 2.8.

I'm at an end here and just not sure what to do next.

It's getting worse lately and didn't fix after a reinstall of SL.

Comp:
Windows XP SP2
AMD Athalon 64 3000+ 1.8GHz
2GB Ram
ATI Radeon X700+ PCI-Express with 256MB Ram

All unnecessary services turned off. Plenty of Cache space on the HDD.
I'm all defragged and cleaned up. I just reinstalled SL after uninstalling it.
I just installed the new ATI drivers + Catalyst. I'm running Direct X 9.0c.

Only real irregularity is I'm running dual monitors. Ones 19'' running at 1600x1200 (85Hz) the other is 17'' running at 1280 x 1024 as an extended desktop. Disabled one and still have the problems.

My FPS fluctuates widely. 5 to 8 is often seen. As much as 30 to 35 sometimes. Probably averages around 10 to 20. I really don't think FPS is all that important though. If I can get my avi to move and see others move around in relatively smooth fashion I'm happy. 8 FPS generally does that for me. It's mostly lag and packet loss that really screw up the movement for me. FPS can be 35 and lag or packet loss make that really crappy video.

Yeah packetloss and lag can get me too. I have it limited to 500 but when I'm getting 2-4fps I am sitting in a sim which is fully rezzed and no textures or anything being downloaded (Well give the normal stuff that might happen).

With SL being a graphic hungry beast, running 2 high resolution monitors is really going to tax your system. Try turning down the resolution to both, say 800x600, and use the UI scaling to put menus etc back into perspective size ratio.