S3 Graphics Card also with "Failed to Initiliaze Renderer" problem

I do not have an ATI driver, but I also get the "Failed to Initiliaze Renderer" Problem. My video card is an S3 Graphics Super Savage IXC/1179. Things I've tried:

1) the latest driver is updated as best as I can tell
2) did try using the recommonded ATI driver just to see
3) google search: it seems like other games like Zoo Tycoon and the Sims 2 also have problems with the same card not correctable by updating drivers...something about it not being compatible with DirectX 9.0

I emailed the manufacturer but haven't gotten a reply yet...

any ideas?

Thanks...My diagnostics are below:

Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Language: English (Regional Setting: English)
System Manufacturer: TOSHIBA
System Model: Satellite 2400
BIOS: v1.40
Processor: Intel(R) Pentium(R) 4 CPU 1.60GHz
Memory: 256MB RAM
Page File: 196MB used, 420MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
DxDiag Version: 5.03.2600.2180 32bit Unicode

------------
DxDiag Notes
------------
DirectX Files Tab: No problems found.
Display Tab 1: Hardware-accelerated Direct3D 9 is not available because the display driver does not support it. You may be able to get a newer driver from the hardware manufacturer.
Sound Tab 1: The file yacxg.sys is not digitally signed, which means that it has not been tested by Microsoft's Windows Hardware Quality Labs (WHQL). You may be able to get a WHQL logo'd driver from the hardware manufacturer.
Music Tab: No problems found.
Input Tab: No problems found.
Network Tab: No problems found.

I had the same problem (and a S3 Video Card).
I tried the old favourite of downloading the newest driver and voilà, I don't get the renderer error anymore.
But since my comp is under-endowed I still don't get it to work properly.