|"I bought a gaming computer that was built for me. It has an ASUS motherboard with integrated graphics"|
Gaming machines don't use integrated graphics.
"I bought a GeForce 8500 GT with 1GB PCI-E"
Weren't there any crappier cards available? lol. The 8500GT is better than integrated graphics, but it's not a gaming card. And since it has 1GB memory, it's probably slower than 512MB cards. You could have done a LOT better.
"Any ideas on what could be happening here, or is this card DOA?"
If the card was DOA, it wouldn't work at all. Did you enter the BIOS & disable the integrated graphics? Did you change the "shared memory" setting to none? Did you change the "Initial display first" setting to PCI-e? Did you uninstall the old graphics drivers?
Is this the driver you used?