What are the other specs of your computer? I don't know a whole lot about that specific graphics card, but there's a good chance that because it is generic and very limited, that it will not be able to run the engine in DirectX9. (I experienced this when Conitec upgraded to A5 with DirectX8.1 on my old ATI Rage Pro, another generic card).

Why not go with the previous version, which is very stable with DX8, for your current project?