Hi Russel, If it was only that easy, to tell you how to improve your laptop. What I can tell you are the realities of the situation.
First, I cannot find an Intel "i5 260" processor in Intel's current line of CPU's, is that number correct?
Although laptop PCs have improved in performance recently, the demands upon them from users and software has also increased dramatically. A perfect example of that is computer games. Many games put a huge demand on a PC in order to function correctly, as you have experienced. The problem with laptops is that in order for them to be portable, they sacrifice performance, that is a trade-off that still exists today. Desktop PCs offer much better performance, but are not portable, it's a compromise. Don't forget that the Windows OS installed on a laptop is the same one installed on the best desktop PC you can buy. The Window Experience Index (WEI) compares ALL potential PCs, and you cannot expect an average laptop to have a score anywhere near a high performance desktop.
Also, it is not simply the CPU that determines the performance of a PC. When Windows calculated your WEI, you saw all the individual scores too. What were the Graphic and Gaming Graphics scores, and the Primary Hard Disk score? All those things combined determines your PC's performance.
Another limitation of laptops is due to their small size, there is very little that can be done to add or change parts to increase performance. For example, and good gaming desktop PC has a separate graphics/video card, which most laptops do not have. They are also not cheap and will not fit in a laptop. Your laptop likely has what is called "integrated graphics", which means they are included in the CPU and/or on one separate processing chip. They are fine for watching videos, but for gaming they are barely capable of running many of them, or not at all as you have seen.
The short answer to your question, "...tell me what to do...", is save your money, do some research on PCs, and buy a better laptop, sorry to say.
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Russel, Ok, now we have much more information, we know what CPU and video card you have, a big difference in figuring things out. You are better off than I thought, with a separate video card, although it is considered a midrange performance card, but better than integrated graphics. Your WEI scores are not bad for a laptop, but comparing a mobile/laptop CPU to desktop models will leave you with that low score.
I must say I am not a laptop expert at all, I have an old one but never use it, I'm a desktop PC person. I can still offer some basic advice. First of all, start checking laptop oriented web sites, since having your own knowledge is better than asking others what to do. Here is one I found that has a page comparing laptop video cards, yours is discussed and categorized among others:
You may be better off than it seems right now, as long as you make some adjustments to your game playing. Basic things to do to while gaming (which you may already be doing) are:
Use power from the wall, not battery power. You need all the power you can get while gaming.
Do not have other programs running while gaming. That means not just minimized, but not running period. Any running program uses system resources which could be used for the game.
Change your Windows Power to High Performance, or as high as you can get on a laptop. Power saving plans will hold back performance as it tries to save power, not good while gaming.
Keep your laptop cool. Have it on a hard surface so the CPU fan is not blocked. Even better, use a laptop cooler which are available now.
Adjust the settings of the game down to lower resolution. You can't run games on a laptop at the best resolution and frame rates, just reality.
Do your homework on laptop components and make an informed decision if you buy a new one. Good luck!