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Actually you can run Photoshop etc off even SiS740chipsets with onboard graphics and I run them perfectly with a system much older than VividStudios, 1.3GHz Duron: yes budget buys.
What it looks like is faulty monitor cables, PSU, overheating and definitely your freezing is caused by insufficient RAM. If you are going to try and run any major software you will need about 1GB RAM at least.
To me this looks like overheating along with insufficient RAM.
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