1gb graphics card can't be mapped into the system with a /3gb boot switch, hence windows drops back to framebuffer mode.
Hero, I doubt your using onboard graphics (screen res implys a desktop machine not a laptop) but if you were, changing its ram allocation in the bios to 512mb would solve your problem. Instead the only fix I have for you is upgrading from XP SP3 to Win 7 X64.
