This is the debug report:

Debug Message: Version v1.0X.2 last updated on: Tue Mar 7 15:02:59 2006
Debug Message: Could not find a TGN Serial No.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 1/1/2007, 09:03:23
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: KENS-LAPTOP
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: TOSHIBA
System Model: Satellite A45
BIOS: v1.50
Processor: Mobile Intel(R) Pentium(R) 4 CPU 2.80GHz
Physical Memory: 1262MB RAM
Page File: 358MB used, 2808MB available
Windows Dir: C:\WINDOWS


Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: Intel(R) 82852/82855 GM/GME Graphics Controller
Manufacturer: Intel Corporation
Chip Type: Intel(R) 82852/82855 Graphics Controller
DAC Type: Internal
Key Device: Enum\PCI\VEN_8086&DEV_3582&SUBSYS_00021179&REV_02
Display Memory: 64.0 MB
Current Display Mode: 1024 x 768 (32 bit) (60Hz)
Monitor Name: Toshiba Internal 1024x768 Panel
Monitor Max Resolution: 1024,768
Driver Name: ialmrnt5.dll
Driver Version: 6.13.0010.3514
Driver Date: 4/23/2003 10:15:12
DirectX Acceleration Enabled: Yes



Sound info
Sound device 1:
Description: SoundMAX Digital Audio
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_8086&DEV_24C5&SUBSYS_02411179&REV_03
Manufacturer ID: 1
Product ID: 100
Driver Name: smwdm.sys
Provider: Analog Devices
Driver Version: 5.12.0001.3670
Driver Date: 7/10/2003 17:05:46
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0



Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_NONE
Debug Message: Game Resolution: 1024 x 768
Debug Message: Running in windowed mode.
Debug Message: HAL (sw vp): Intel(R) 82852/82855 GM/GME Graphics Controller
Debug Message: D3DPRESENT_INTERVAL_IMMEDIATE
Debug Message: Refresh rate: 0
Debug Message: Bit Depth: 32 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: Hardware does not support a color cursor.
Debug Message: Border size reported as 6 by 32
Debug Message: RGB in format 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now windowed.
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 a67a8f90
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Set mouse.
Debug Message: Set update timer.
Debug Message: Clear data definitions.
Debug Message: No files found matching mask C:\Documents and Settings\Kenneth Freeman\My Documents\My Games\GalCiv2\*.StarSystems
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for PirateShip. ***
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for Starbase. ***
Debug Message: No files found matching mask C:\Documents and Settings\Kenneth Freeman\My Documents\My Games\GalCiv2\ships\*.shipclass
Debug Message: No files found matching mask C:\Documents and Settings\Kenneth Freeman\My Documents\My Games\GalCiv2\ships\*.shipcfg
Debug Message: Reading Star Names
Debug Message: Reading Star Names... Done
Debug Message: CustomRaceWnd: Cannot find OBJID CustomRace_Description_Text
Debug Message: CustomRaceWnd: Cannot find OBJID CustomRace_Tab_Homeworld
Debug Message: Creating Galaxy
Debug Message: Set galaxy size.
Debug Message: Killing threads.
Debug Message: Kiling civs.
Debug Message: Killing ships.
Debug Message: Killing rallypoints.
Debug Message: Killing misc objects.
Debug Message: Killing stars.
Debug Message: Killing anomalies.
Debug Message: Killing space resources.
Debug Message: Killing colonies and planets.
Debug Message: killing scenario.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Creating Random Map
Debug Message: Creating Random Map... Stars
Debug Message: Number of Unplaced Stars: 9.
Debug Message: Creating Random Map... Planets
Debug Message: *************** Failed To Place Planet ***************
Debug Message: Creating Random Map... Anomalies
Debug Message: Num Anomalies: 59
Debug Message: Creating Random Map... Resources
Debug Message: Creating Random Map... Done
Debug Message: Creating Civs
Debug Message: Terran Alliance: Intellence -> 30
Debug Message: Drengin Empire: Intellence -> 30
Debug Message: Altarian Republic: Intellence -> 30
Debug Message: Arcean Empire: Intellence -> 30
Debug Message: Creating Civs... Done
Debug Message: Updating ZOC.
Debug Message: Updating ZOC.
Debug Message: Galaxy Create... Done
Debug Message: UIBeginGame called with g_ulLocalPlayerID = 5
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0

Edit: then again you may definitely need to buy the vid card... quote from wiki -

The intel 82800 series is (at least via emulation in some parts) DirectX8 compliant, aside from the exceptions noted on that page, so it should run the game (though not well, as with many below-spec systems). So HorrorChild should need to simply obtain the latest video drivers available from intel's website.

HorrorChild, you should also update the game to the latest version, 1.4X. The patch is available on the downloads page of this site.