Suggestions about performance?

I'm running SQL server 2005, and my perfmon stats look like:

PhysicalDisk:
% Disk Read Time: 0.510
% Disk Write Time: 159.496
% Idle Time: 35.169
Avg. Disk Queue Length: 1.600

Process: sqlservr
% Processor Time: 18.750
Working Set: 1201704960

Processor:
% PRocessor Time: 5.471

SQLServer: Buffer Manager
Page life expectancy: 32460
Page reads/sec: 0.998
Page writes/sec: 15.969

SQLServer: Databases Total
Active Transactions: 2
Transactions/sec: 589.861

SQLServer General Statistics
Logins/sec: 296.428
Transactions: 2
User Connections: 211

SQLServer: Locks
Average Wait Time (ms): 17.273
Lock Requests/Sec: 28836.331

SQLServer: Memory Manager:
Connection Memory(Kb): 3526
SQL Cache Memory(kb): 12472
Total server Memory (kb): 1104896

SQLServer: Plan Cache
Cache Hit Radio: 78.988

SQLServer: SQL Statistics
Bach Requests/Sec: 588.863

System:
Context Switches/sec: 5508.366
Processor Queue Length: 0

Any suggestions on what I can do to optimize the setup?

Thanks for the help.

Everything seems to be running smoothly on the server; but randomly the server locks jump up significantly and then the server starts rejecting logins and I have to restart the sql server; or reboot.

Any clue on what can be causing that?

Thanks,
Joe

you are probably throttled on logins/sec,
start by enable connection pooling on you app server
afterward, you could probably benefit from consolidating calls to SQL, depending on what you are trying to accomplish with this app

next, get the main database logs on to a dedicated disk

see my site, www.qdpma.com/instructions for which perf counters are relevent, and which are not