Windows randomly freezing. Using USB to HDMI. Can it be hardware?

I have been using a cable to connect my PC to an HDTV connecting USB to HDMI. The cable brand is AUVIO. It has worked with no problems since I bought it about 3 months ago. I recently formatted my PC to it's original factory settings. Now, Windows freezes at random times for about 3-4 seconds then continues as normal. I can't view videos on YouTube anymore because of this. Or any videos of any kind.
It sounds as if the drive itself is what freezes, not the OS. That makes me think it might have something to do with the PC hardware and not the cable. Can it be because I have low memory or a not so great video card?? Any and all help is appriciated!
Here are the basic specs for this PC...

Time of this report: 3/1/2013, 15:44:37
Machine name: DUBHE-PC
Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7601) Service Pack 1 (7601.win7sp1_gdr.130104-1431)
Language: English (Regional Setting: English)
System Manufacturer: Compaq-Presario
System Model: BQ471AA-ABA CQ5500F
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: AMD Sempron(tm) 140 Processor, ~2.7GHz
Memory: 3072MB RAM
Available OS Memory: 2814MB RAM
Page File: 1947MB used, 3679MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7601.17514 64bit Unicode