Yeah, I'd wager it's your onboard sound and a new, discrete sound card would cure that. You could go for a middle-of-the-road (medium price, not-quite-top-notch sound quality and games performance) hardware-accelerated
Audigy 2 ZS, something like the
Chaintech AV710 (cheap, supposedly great-sounding Wolfram DAC for two-channel sound), or pony up for a best-of-both-worlds
X-Fi Xtreme Music.
Note that tho that Chaintech link mentions better performance, I was under the impression (based on a number of reviews at TR, Gamespot Tech,
3DC, etc.) that hardware-based acceleration (like on an Audigy or X-Fi) can offer 10-15% higher framerate than a software-based sound solution (onboard, Chaintech AV710, etc.).
This isn't always the case, tho, as I found out with my new Audigy 2 ZS. I tried Halo (one of several bundled games), and noticed that enabling hardware sound seriously cramped my framerate. OTOH, I see the opposite effect with Darwinia, for instance.