X700 Pro specs -> 6VShaders, 8Rops,8Tex, 8PShaders (SM2.0), PixelFill 3360, TexFill 3360
MinRec specs X1600(XT)-> 5VShaders, 4Rops,4Tex,16PShaders(SM3.0), PixelFill 2360, TexFill 2360
6800-> 5VShaders, 12Rops, 12Tex, 12PShaders(SM3.0), PixelFill 3900, TexFill 3900
Recommended HD2600(XT)->120U(VandP)Shaders, 4Rops,8Tex (SM4.0), PixelFill 6400, TexFill 6400
7600(GT)-> 5VShaders, 8Rops, 12Tex, 12PShaders(SM3.0), PixelFill 4480, TexFill 6720
Makes you wonder doesn't it. On the ATI yes yours is faster than the X1600XT but it doens't support everything that the X1600XT does. Although it is faster it isn't by much. But it is slower than the 6800 and your videocard is nowhere near the speed of the Recommended cards although I would seriously recommend a faster card than what they are recommending. These recommendations need a lot of work (not just for this game but all of them).
Anyways I would up your memory even though it says you have 300MB free(I hope/used wouldn't make sense[Of course you could mean before running the game in which ok but the game uses more than 800MB on my system it uses about 1.5GB(Vista 64)]), anyways I doubt that is the truth of what is being used remember you have Virtual Memory and Windows WILL use it on things it thinks are not as important if it thinks it needs to put something in the Real memory. The thing to watch out for is your Peak commit charge when looking at memory usage (XP taskmanager under performance, Vista (Process Explorer[Google] View->System Information)) This tells you how much memory (Virtual + Real) that you are using. For the Videocard if you have the money the HD4770 is a sweat deal right now ($110) it will play any game nicely other then that going dual core would also help although that would mean moving to AM2+/3 socket, but at least you don't need a new video card as you are on PCI-E and your HD is SATA.