Yes it could be the geforece 3 dosent have 3 stages.. in this case you will need a 2 stage fallback.. i would then forego the first stage and just use the last two.. that way you will still have the environment bump mapping.

I dont really know what the purpose of bumpenvmat is.. it seems to work ok without setting it up...when i do put it in it doesnt seem to work correctly..
maybe someone can figure it out?

Yeah you probably should convert the the bump map to a normal map.. i just forgot