On checking your cable connection:
I currently am a Cablevision subscriber. On their web page, they have a link to do some tests on my current connection (a great way to see what kind of lag you might be experiencing). See if your internet provider a web site that has something like that.
It could also be your modem (hoping you have broadband; I know some friends that use dsl; they go through some stages where there spped is great one day, and really bad the next). I'm not a big propenent on playing games over wireless connections, though I have set up several wireless environments. If possible, if you're playing on a system over a wireless, try connecting directly to your router, and see if there's a difference.
If you really feel it's your computer, as an alternative to Dell, go to
www.tigerdirect.com. You can put together a pretty good system (I'd recommend an Athlon 64, or a dual-core (Athlon X-2), at least 1 GB RAM, and a PCI Express Video card....
Hope that helps a little bit...