Jahern,
This video card that you have would work with older versions of Microstudio. The problem is that your video card doesn't support DirectX 9.0. There is no way for this card to support it, the only thing to do is upgrade to a newer Video card.
You can see on ATI's Website that it won't support the DirectX 8.1. This is the latest version that it supports, which won't work for Microstudio.
Here is the Link for the latest drivers for Xp
http://mirror.ati.com/support/driver...20010r128.html
Here are the latest drivers for Windows 98 SE
http://www.ati.com/support/products/...=13&submit.y=9
Here are the latest drivers for Windows ME
http://mirror.ati.com/support/driver...284137192.html
This card should work fine with older versions of Microstudio such as 2.400 and prior, which didn't use the DirectX 9.0.