I dont think the GeForce 2 supports 3 Textures, so I think the fallback technique will be used.

If it's too shiny, maybe it's because of the power of the material is too small (the less power, the more specular reflection ).

BTW: For 2 pass Dot3 Bumpmapping you should render the bumpmap and the diffuse color in one pass, and then the skin with alpha blending for simulating the "addsigned" Colorarg. You can also render bumpmap and skin in the first pass and then in a second pass diffuse color, but I think it's worst.