First of all, excuse my bad english.
Now be patient, a friend mine has got the same problem, the system requirements are extremely high than he has. But he only need to purchase 256 MB of RAM (he had 64 only) and must change the display adapter (he had a Riva TNT2 and tried with a Geforce FX 5200 and it doesn't work (same message than your one)).
Also tomorrow we try to play installing an ATI Radeon 9250, that's the model of the display adapter that my girlfriend is using and it works!, but the system is already a few newer than my friend's system. I could tell you tomorrow what happens with the Radeon 9250. The rest of config is:
Pentium III at 800Mhz
Initially 64 Mb SDRAM PC133 actually 256 Mb
Integrated sound card
10 Gb Hard disk ultra ata 33
cd rom 52x
Nvidia Riva TNT2 (not works with SIMS2)
Nvidia Geforce FX 5200 (not works with SIMS2)
ATI radeon 9250 (working in an athlon 1600+ with 256 Mb DDR266Mhz and Abit KG7-Raid with Creative SoundBlaster Live! 1024)
See you later.
Note: I found your topic surfing the web searching for a complete list a graphic cards compatible with Directx 9.0c.