Game is laggy and crashes even though I should be able to run it more than fine.

I just got this tonight and everything is running smooth until I get to the character creation part where you choose parts, colours, etc. which is where it slows down. So far while trying to just get through it and make a character it freezes and i have to CTRL+ALT+DEL and cut it off, when I don't do that it just crashes to the desktop. I have tried restarting my computer and just making a trash character to tone down the settings in game as a test but the game itself is lagging too. I have done searches around the forum and found this COH Helper, here is the information it gave me:

---System information gathered by CoH Helper version 0.1.1.8---

DxDiag gathered at April 19, 2010 01:39 (-07:00)
Operating System: Windows XP Professional x64 Edition (5.2, Build 3790) Service Pack 1 (3790.srv03_sp1_gdr.090319-1204)
System Manufacturer: System manufacturer
System Model: P5K/EPU
BIOS: Default System BIOS
Central Processor: Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz (4 CPUs), ~2.4GHz
Memory: 4094MB
.Net Memory Report: 2984MB out of 4094MB available
Page File: 4954MB (925MB currently in use)
C Drive: (WDC WD5000AAKS-22A7B0) 2234MB out of 20002MB (11%) free
E Drive: (WDC WD5000AAKS-22A7B0) 133982MB out of 300002MB (44%) free
F Drive: (WDC WD5000AAKS-22A7B0) 136096MB out of 156900MB (86%) free
D Drive: (TSSTcorp CDDVDW SH-S223Q) zero-size drive
I Drive: (ELBY CLONEDRIVE SCSI CdRom Device) zero-size drive
Windows directory location: C:\WINDOWS
DirectX: DirectX 9.0c (4.09.0000.0904)
DirectX Diag version: 5.03.3790.1830 (64-bit version)

Display Notes: No problems found.
Sound Notes: No problems found.
Input Notes: No problems found.

Monitor: ViewSonic VA1926w-3 SERIES
Monitor's Max Resolution: 1440,900
Video Device Name: ATI Radeon HD 4600 Series
Manufacturer / Chip: ATI Technologies Inc. / ATI Radeon Graphics Processor (0x9498)
Video Memory: 1024.0 MB
Driver Version: 6.14.0010.6983
Driver Date: 01/01/0001 12:00:00 AM
Driver Language: English

Sound Device Description: Realtek HD Audio output
Driver File: RTKHDA64.SYS
Driver Version: 5.10.0000.5532
Driver Date: 01/01/0001 12:00:00 AM


WMI Information
Motherboard Manufacturer: ASUSTeK Computer INC.
Motherboard Model: (empty)
Motherboard Product: P5K/EPU
Motherboard Version: Rev 1.xx
BIOS Manufacturer: American Megatrends Inc.
BIOS Name: Default System BIOS
BIOS Version: UNKNOWN
BIOS Release: 20080212******.******+***

Registry Information for Current User
Resolution: 1440x900
3D Resolution: 1440x900 (Not using renderscale)
Full Screen: Yes
Maximized: No
Screen Position: 0, 0
Refresh Rate: 60Hz
Vertical Sync Enabled: No

Physics Quality: Medium
Maximum Particles: 50000
Max Particle Fill? 10.000
Physics Card Enabled: No

Anti-aliasing: None
Anisotropic Filtering: 2x
Texture LOD Bias: Smooth
Water Effects: High Quality
Bloom: 1.000 (turned on)
Depth of Field Enabled: Yes
Desaturation Effects (Sepia) Enabled: Yes
Shader Detail: Medium

World Texture Level: High
Character Texture Level: High
World Detail Level (Vis_Scale): 1.000
Entity Detail Level: 1.000
Shadows Enabled: Yes
Gamma Correction: 1.000
Geometry Buffers (VBOs) Enabled: Yes
Suppression of Extra Player FX Enabled: No
Suppression of FX When Camera Close Enabled: No
Close Suppression Range: 3.000
Show Advertisements: Yes

Audio Mode: Performance
3D Audio: No
FX Sound Volume: 1.000
Music Sound Volume: 0.600

Show Advanced Graphics Options: Yes
Overall Graphics Quality: 0.600
Reverse Mouse Buttons: No
Save Login Username: Yes
Transfer Rate: Unknown bytes/second
Current Game Version: 1600.20100114.11T
Installation Directory: e:\steam\steamapps\common\city of heroes

Mod files in the Data directory
No modifications found

I would really appreciate any help I can get.

Issue has been fixed, turns out the system requirements are grossly outdated and it took some tweaking to avoid crashes. Working now.

You exceed the system requirements by a whole lot so I have no idea what "tweaks" were required to make it run. Care to elaborate?

for his version of XP service pack 2 is the highest he can go for that since he has the 64bit version.