I seem to recall reading/hearing/sensing/tasting that Ep1 is more demanding on a system than HL2 is alone, but my understanding that you could put a stick of gum in your AGP/PCIe slot and so long as it has 'ATi' written on the side of it, you would get good FPS in HL2 games.
You shouldn't be having too many problems with your rig, what other games do you play and how is their performance? I recall that on my AMD64 3800+ with 2GB RAM, and 7800GTX I didn't have too many problems with the episodes, at least nothing that I wasn't able to put up with, and I am a huge quality snob.
Have you tried dialing back the eye candy? Starting with Anti Aliasing, Filtering, and shadows. Oh, and the water effects, those can put a toll on your system.