Definitely check drivers/etc (as Heidi said).

Also, it could be the video card because only certain levels of hardware support "graphics features". It looks like your drivers/hardware (one of the two) is lacking "Vertex shader 2.0" support.

Taxman

"Any group is weaker than a man alone unless they are perfectly trained to work together."
- Robert A. Heinlein, Starship Troopers