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Computer Specs:

M2N32-SLI Deluxe ASUS Mobo
2gig Crucial Ballistix RAM
10,000rpm 150gig WD RAPTOR Hard Drive
AMD x64 Dual Core CPU
700w GameStreamx PSU
Samsung SATA-Black DVD/CD Burner
EVGA 8800GTS 640mb VRAM

On launch ( I have the STEAM version ) it'll load the Splash screen but after that it'll go to the Multiplayer main menu and lag, FPS will go down to about 1-10fps and the background animation skips. I've reinstalled, defrag and installed all the latest drivers, I've looked around on both here and the STEAM forums but have found no solutions to this. I've looked at my temps during play and they are very stable. 45/38c ( Dual core Proc ), 54c GPU, 34c HDD are the temps according to Everest. Does anyone know a way to fix this?

That's sounds very odd to me. You should try getting the AMD Dual Core Optimizer, maybe that will help.

try to reconfigure you pre-setting, i mean graphic card setting in window before you play COD4, after that, at COD4 video setting, set all mode to low first, then adjust each mode by seeing respone of the game.
this is what i've done on crysis, adjusted until it run "smooth", else you'll get big head.
anyway sound is really odd, last time i played COD4 was fine on my laptop
i'm using 8600M GT 256mb,4Gmb,XP
Whereas my PC is 8600 GT,256mb DDR3.

And find a latest driver version of your graphic card

I've fixed it, I've reinstalled the game and turned everything to what it should be but I turned the Dual Videocards to on and it fixed it, I guess with newer cards that are higher then the 7 series are counted as dual videocards.