From day one Ive been having issues with my computer. Im poor and cant really afford alot of high end equipment, so I purchased a case witch came with a psu (I know, not a good idea, but again, I cant do anything about it for now $$$)

The Issue: While on my desktop or in-game (anytime really) I experiance lag. Its not frequent, or long lasting. Its kind of like when your get a lag spike in an online game, it happens about every 10 minutes give or take, and only lasts for about split second. I do notice fluxuation in my cpu voltage, however its not consistant with the spikes. Ive been in and out of everything trying to solve this, and im lost. If anyone has experianced this, or has any ideas what it could be, or how I could narrow down the culprit, please advise. Thanks.

take off your oc and try

I have, its been an issue from the first day I built my computer pre-overclock.

hmmm

have you tried re-installing windows? I know thats a lot of work, but it sounds like you're tried lots already

no, havent tried reinstalling windows /sigh
Id hate to have to do it, but it may be my next step...

A full spyware and AV scan might turn up something too. Couldn't hurt.

addware, spyware, virus scan, scandisk, defragment, windows update, bios update, driver updates, all completed.

Mainly my question is, does this sound like something that could be caused by a bad power supply?

I had a similar problem before my last upgrade. That upgrade consisted of a new PSU and a new case. Now, I don't think it could have anything to do with your CPU, mobo, or RAM (especially since it's Corsair), so I'm guessing it's your PSU. I think after I upgraded my PSU from the one that came with my last case (non-brand name PSU) to a brand name one, I haven't had that lagging problem again. Now, this was on my old AthlonXP 2800+ with PC-2700 Kingston RAM. So my old system wasn't far from yours (except for the mobo, of course. I had an Asus based on the VIA chipset)

I suggest getting a quality PSU. It doesn't need to be all fancy with lights and stuff, which means it doesn't need to be expensive. Just get a good company like Fortron, Antec, or Vantec, and you should be fine.

To be honest there really is a lot of old rubbish spoken about PSU's and it seems almost the norm now to have one that could power most of your household appliances as well as your computer, In my experience (and I've been playing around with pc's since before the Spectrum) most psu's that come with cases seem perfectly adequate and are normally qc labelled as passing your country's quality standards, to the extent that not only have I never had one fail but I actually don't know anyone that has, but anything can develop a fault I suppose so yours is a valid question, couple of low cost tips to try before you invest in something that could power NASA, give your psu a strip down and clean out the fluff (big cause of failure if you let it build) and go down to your local electrical retailer and buy a cheap surge/ spike protected extension, I used to get random lock ups in the early evening tv advertisment breaks because everyone in my street put the kettle on (unbelievable but absolutely true, I had to buy a UPS!)