Thanks for responding. I don't play a lot of games on my box so I had to install some to be able to answer your questions. The answer is, it depends. I can run games such as "the Sims" but when I tried to run Star Wars Racer I received an identical error.
Under the Display tab of Dxdiag, DirectX Features section, DirectDraw Acceleration is Enabled. Direct3D is not available and AGP support is not available.
Hopefully this answers your questions so you can make some conclusions. Thanks
Gary