Win2K Server Slow responding, sluggish and locks

[neuro]

Was wondering if anyone would know why my win2K server for no reason locks during regular processes, i.e. right clicking a folder, trying to access my computer, etc. The lockup lasts for 20 to 40 secs, and then everything I tried to click on suddenly appears. Im running 512m ram, 2 P2 1.00GHz Processors with a fast track UDMA 100 raid card, set using Raid 0. The only thing I can notice in the task manager under processes is the software Live Stats 5.0 is chewing memory up at a constant rate, usually peaks at about 40,000k, when I shut this service down the server begins to run faster? When I load it backup it begins its climb once again to the 40,000k memory usage mark. Im not sure if this is causing the problem, is there a way i can perform some type of test on this program using the performance snap in?? And no its not a heat issue, the room its in is very cool.