Battlefield 2/pnkbstrb

Hey guys ive been reading the forums for a while now and finally registered. I installed windows 7 32 bit and bf2. bf2 would run fine except for being jumpy and having ping spikes. I fixed the ping problems but its still jumpy. all settings are on low and the res is 800x600 60hertz. When I had XP it ran smooth. But now that I have the ping fixed im getting pnkbstrb.exe heartbeats stop error, key packets lost, pnkbstrb failed initialization and rarely 'ignoring md5tool queries. Ive deleted the pb folder, ran pbsvc and pbsetup and still nothing. I know my pc isn't the best in the world but it should run bf2 on low quality smoothly.

AMD 1.9GHZ

ATI x1300 256 AGP

1.5GB RAM

On board sound and LAN

Asus nforce2 chipset mobo

I've even set the theme to the most basic one you can have and also downloaded 'gamebooster' which disables alot of processes such as windows search to optimize performance. Im just left scratching my head at this point I would hate to have to reinstall bf2 and/or 7 but maybe ill have to give that a shot?