The biggest performance hit comes from Hardware Physics: Off, since all PhysX is being calculated on your CPU which already has much to do in this game and is kinda old already. Set it to On, also set Shaders to 3.0 if available (in theory it may actually boost performance). However, as i said earlier, if you have an error in Cryostasis, setting HW physics to off may help you to proceed.
You have a good video card, but slow CPU. Consider upgrading to modern CPU and motherboard, you should be able to keep other components (except RAM maybe). And install Win7 to use all features of Dx10&11 (however, you'll run into some problems with Creative drivers to keep EAX in games).
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