System completely hangs/freezes; mouse and keyboard also doesn't work!

ultrex01

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I've bought a new pc. Here are the details:
Intel C2D 3Ghz (E8400),
Transcend 2 Gb 800 MHz ram,
nvidia 630i /GeForce 7100i mother board,
western digital 160 gb sata 2 hdd,
frontech 500W psu,
and i currently have 5 fans running (3 on cabinet, 1 on psu, 1 on cpu). When i check the exhaust air coming out of the fans outside, its not so hot.

my pc completely hangs even without any heavy applications running and i have to restart with the reset switch.
what the problem could be?
hangs occur with no mouse movement, even capslock/numlock lights not going on/off!
Also there's an 8 pin ATX 12 v slot in my motherboard but my psu gives only a 4 pin connector. i was advised to put the connector to the right side (the right half of the 8 pin slot) (the side closest to the processor). Is that creating any problem?
All my drivers are up to date and my system is virus free. I also clean my registry quite often.
I have internet through LAN and it's my observation that the hangs tend to occur if my internet connection is on.
I made the BIOS settings default but still it didn't help!
When i made the settings to "error-safe default", the system hanged while booting!
It's really frustrating! A problem with the hardware would be very very dissapointing especially since the pc in new!
Please help!
 
i had this problem, happend to me when i installed some ram, had to remove it and now it works
 
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