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CPU spikes

I have a MS SQL2000 database running on a Pentium 4 machine with 2GB of RAM right now. The first SCSI disk contains a partition with the operating system while the other two SCSI disks are in a RAID 1 set.
For the most part, the actual data files are tiny images, tifs, stored and accessed by roughly 50 end users. When the RAID 1 set filled up, the images were getting stored on the rest of the first disk where the OS sat.
Not surprisingly the CPU usage started to spike up as well. I’ve defragmented the drives as well but there is only a slight improvement. For the most part, it’s rather slow.
Is there a way to tune this DB with what I have right now? Is the db fragmented? What can I do to bring this CPU level down and speed up this db?
You should ask for more disk space. Also, better keep images out of db if it is an option. You may have internal fragmentation. There are a lot of question that can be asked before advising, but you may be benefit from studing suggestions from http://www.sqlserverfaq.com/content/kbase/store/meetings/KB664_Fragmentation.ppt#256,1,Fragmentation