Well, first off, this is not a shader at all--it's a fixed function effect, and as such should run on any card.
as far as why it doesnt give the dsired effect I can't help a lot,unfortunately i dont really understand the texture stage states like i ought to. however, you might try commenting out this : AlphaOp[1] = Disable; and this:colorop[2]=disable; alphaop[2]=disable;
This might not do it but i dunnno why you would need a third stage here to disable.. anyway also outhgt to chnage this alphablendenable=true; to false and this lighting=false; to true
let me know if this does anything.. if not, maybe i can load the effect and mess around with it.