The culprit is your antivirus (AV) program, however at the same time, I blame that hard drive of yours. Is your hard drive light on constantly while the computer audibly crunches away?
Here's what I mean:
Your antivirus software is (I assume) actively scanning your hard drive malware. This is usually branded as "real-time protection". When it does this, whatever files you or your system access are checked by your AV software first. This is all fine and secure, but it causes some excessive hard drive activity.
Now, why I accuse your HD of acting up, is because the speed of your hard drive will directly affect it's performance.
Hard drives have internal platters that constantly spin at a specific speed, much like a record player. The data is stored in sectors on your hard disk, that sit on a specific spot on the platter. Once the hard disk seeks to the location of the data, it must wait until that particular sector spins around to be picked up and read.
These wait times are very small, a millisecond or so typically. But multiply this by the thousands of seeks your hard drive does to read a file, it adds up. This is where you're seeing your sluggishness.
Most inexpensive hard drives are built to operate at a modest speed of 4500 RPM. These drives are usually found in lower end laptops and desktops, and are chosen by OEMs based on price, not performance. This allows them to sell you a computer for a lower price. Did you buy your particular computer based on it's price, or based on it's performance? Price; i thought so...
I would recommend purchasing a newer hard drive with a speed (called a spindle speed) of at least 7200 RPM. This faster speed means less time waiting for a piece of data to make it's way around the platter to be read. If you're really feeling tough, you can go the distance and get a 10,000 RPM hard drive, but these are a bit overkill for normal desktop use.
Also, if you are running lean on RAM (which is *very* common for budget PCs), some hard disk space is used as "virtual memory". This is when some of the data stored in lightning-quick RAM is transferred back and forth between the super-slow hard disk. This happens when your computer needs more memory than your RAM can accomodate, and it just multiplies your slugishness.
Invest in some more RAM. Aim for at least 768MB for Windows XP. RAM is dirt cheap these days, take advantage.
Keep this in mind always: Especially when it comes to computers, you GET WHAT YOU PAY FOR. When you buy budget hardware, you're gonna get budget performance. No exceptions.