Ok heres an update!!
I have tried a different graphics card in my system and the frameskips still occur
i have taken out ALL other internal hardware (soundcard) and the frameskips still occur
with the exact same system setup the frameskipping does NOT occur on windows ME
As far as i know the frameskipping does NOT occur when windows is starting up (when the small dialogu box is on the screen displaying windows 2000 starting up, preparing network connections etc)
The skips only seem to occue when the desktop icons appear and the task bar.
I have tried disabling USB and no change, i have installed service pack 3 and no change!
Reinstall windows??? - even though i have tried this before and it seems to keep on happening!