Well, you would benefit from upgrading your system. The Sempron is not a particularly powerful CPU, and MC5 with several VST's is probably a bit of a strain on it. You can open Task Manager to see how hard it is working.
Upgrading to a core 2 and more RAM would certainly be good, although that won't address what is probably the main culprit.
You don't mention an interface, so I am guessing you are using the built-in sound card. If so, what you are experiencing is very common.
A decent sound card/interface will make the most difference, followed by upgrading your core system.
It won't be dirt cheap, but you can move into the present nicely for less than you probably paid for that old PC in the first place.
Also be aware that MC5 and some of your plug-ins may not run properly on a new PC.
Since you are serious enough to be creating a dedicated music work area in your home, this would be my plan of attack:
New PC: At least Windows 7(XP is done, and Vista already has limited support). At least 3GB RAM(preferably capable of supporting more). A respectable CPU. If budget is tight, look into refurbished units. I have been shopping NewEgg and have found some PC's with respectable specs at pretty good prices.
Interface:This is the heart of your system, arguably more important than the computer itself. Carefully compare specs, especially I/O, MIDI, and drivers. Get the best you can afford, preferably a bit more than you think you need now.
DAW Software: Upgrade to X3. As a registered user, the basic version of X3 is the same price as MC6.
X3 Studio is a bit more, but worth the difference.
Until a few months ago, I was running a 2.4GHz P4 w/1GB RAM XP(SP3) system. It had an E-MU0404 PCI sound card, and did quite well, until it died. I'm following the same plan I just suggested for you.
I've got X3 Studio, and a decent interface (the Akai EIE Pro).
I'm getting by with a Vista laptop until I can bring a new PC into the picture. With the Akai interface, it is doing surprisingly well, but it's still an interim solution.
Sorry for such a long winded answer, but hopefully it is of some help.
Good luck.