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Couple of things to add to what GDuns said.
One is 512 MB memory is adequate but barely. I would consider kicking that up to 1 GB.
Two if you haven't I would look at the Custom updates from Microsoft and do any that pertain to hardware. Also if he is going to upgrade (highly recommended) then you will need to load .Net Framework 1.0 and 2.0 to be able to install.
Most likely your glitches are being cause by the program running from the external USB drive. Response from a USB port as opposed to an internal IDE or SATA port is greatly reduced.
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Dale Douglass 2nd Generation Karaoke I am not a member of the MTU Staff.
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