Everything seems to be working for me. I wiped out the computer and installed a fresh windows 7. I added a different ip cam, Samsung SNH-V6414BMR HD Plus 1080p Wi-Fi IP Camera, and its doing its thing now.
One thing i am noticing is that its not smooth as in the seconds dont tick perfectly. I have lowered the bandwidth to 1.5 from the default 6 to see if its helps. The BI pc is on wifi (4ft away)for the moment pending delivery of my GB switch from amazon.
Even the play backs confirm its not just live video. The computer is only using 30% CPU and 1.3GB ram (300mb in BI) of 4gb.
I am following your wise suggestion to purchase an i5-3470 but until it gets here is there something i can do to smooth this out temporarily?
Hot in the desert,
Prinler