There is a Mach III optimization document in the downloads section.  I would suggest downloading it and going through it step by step.  I first set Mach III up on a laptop and even after I got the problems associated with a laptop taken care of (the processor like to slow down), I still had problems with Mach.  Turns out that Apple installs a little program that runs as a service when you install Quicktime.  I forget the name of it, but all it is good for is sucking up a bunch of processor power and making Mach hiccup.  Some folks have had problems with on-board graphics, but I have had good luck so far.  If your using the PC for other things besides Mach, you might consider making it a dual boot machine; install a basic XP install on another hard drive (or partition) that is optimized for Mach III, boot to it when machining.