I too bought my M1195C a Sams in December of 2004. I put up with the pause/freeze for 2 years, until I found a forum with the fix. The DVD-ROM firware is incorrect. Go to the HP web site for M1195C Media Centers, download and install the firmware for the Philips 6116 DVD-ROM. You will need to burn a CD and reboot to install the firmware. Even if you are not using the DVD-ROM, it causes the system to hang about 10 seconds several times per hour. The fix worked for me. Also, download and install the new firmware for the DVD R/RW Drive. Check your Device Manager and see what type of DVD R/RW you have. Mine was an LG. If the firmware on the web site is for the DVD R/RW drive you have, install that too. When I tried to install that firmware, I got a message that the firmware was up-to-date. However, the firmware for the Philips 6116 DVD-ROM was not up-to-date.
Upon rebooting after the DVD-ROM firmware upgrade, I stopped having any freeze/pause problems. It was as if I bought a new computer. Good luck to all.