Yes, for me it works fine on normal texture packs, but I really wish I could use high-res textures.
Also overload, have you tried making you're minecraft a tekkit/ technic build instead of using the launcher. If you haven't it may help reduce lag, go to this link: http://www.mediafire.com/?84roljqg9jwd595
1. Make sure you backup you're whole .minecraft by placing into another location
2. Delete .minecraft from Roaming, don't forget to keep a backup
3. Open the .rar file and place .minecraft folder into Roaming
4. Start minecraft and do not update
You can put in your old saves, however it may not load properly, as I had this problem. I would recommend starting a new world and if you want use the tools to restore your world, it's your decision.
It usually works best without texture packs but if you really do want one try out 16x or 32x, I don't recommend it since you're graphics card is worse than mine, by a long shot, so you'll just have to stick to default. Feel free to mess around with optifine to fix it, turn off smooth lighting definitely, and turn off MAtmos.
Hope I was of help.