AOE2/3 on Windows 7

Having upgraded to a new computer with Win7Pro & XPvirtual(installed) with 500GB hdd & 2GB RAM & advised that AOE2/3 & Expansions(all which played perfectly on WinXPhome) would play fine on Win7, but doesn't(even on XPvirtual) When I load AOE2 I get "Could not initialize graphics system. Make sure that your video card and driver are compatible with DirectDraw "
The MBoard Spec below seems to indicate the onboard graphics are more than able to cope, the color as the game tries to initiate is fuzzy with odd red dots!
ASUS M4A785G HTPC Series specifications summary
CPU:AMD®AM3/AM2÷/AM2 PhenomTM II /Athlon Ill
PhenomrM /AthIonTM /SempronTM Processors
AMD 45nm CPU support
AMD Cool’n’QuietTM Technology
CHIPSET: AMD 785G / SB71O
SYSTEM BUS: Up to 5200 MT/s; HyperTransporttM 3.0 interface for
AM3 /AM2+ CPU
2000 / 1600 MT/s for AM2 CPU

MEMORY: Dual-channel memory architecture
- 4 x 240-pin DIMM sockets support unbufferred ECC / non-ECC DDR2 1 200(O.C)* /1066* / 800 /
667 MHz memory modules
- Supports up to 16GB system memory
* Due to AMD® CPU limitation, DDR2 1200/1 066 are supported by AM3 / AM2+ CPUs for one DIMM per channel only. Refer to www.asus.coi or this user manual for the Memory QVL (Qualified Vendors Lists).
** Due to OS limitation, when installing total memory of 4GB capacity or more, Windows 32-bit operation system may only recognize less than 3GB. Hence, a total installed memory of less than 3GB is recommended.
GRAPHICS: Integrated ATI RadeonTM HD 4200 GPU
- Supports HDMIM Technology with max. resolution up to 1920 x 1200 (1080P)
- Supports Dual-link DVI with max. resolution up to 2560 x 1600 @60Hz
- Supports D-Sub with max. resolution up to 2560 x 1440 @ 75Hz for 16:9 format
- Hybrid CrossFireXTM support
- Dual independent displays support with HDMI / DVI and D-Sub)
- Supports Microsoft DirectX 10.1, OpenGL2.0, Pixel Shader 4.0
- Hardware Decode Acceleration for H.264, VC-1, and MPEG-2
- Maximum shared memory of 512MB
EXPANSION SLOTS: 1 x PCIe 2.0 x16 slot
2 x PCIe xl slots
1 x PCI 2.2 slot

 

I have directX 11 according to RUN & various other infomation that means very little to me, have saved all the info in a file.
The System Requirements for the AOE games is:
• Microsoft® Windows® 95/98/Me/XP/NT 4.0 with service pack S
• PC with 166 MHz equivalent or higher processor
• 32 MB of system RAM
• 200 MB available hard disk space, 100 MB of available hard disk space for swap file
• 4x speed or faster CD-ROM drive
• Super VGA with 2 MB of video memory
• Sound card, speakers or headphones required for audio
• Microsoft Mouse or compatible pointing device
• 56.6 Kbps or better modem for online play
Does not the onboard "Integrated ATI RadeonTM HD 4200 GPU" mean that the motherboard is more than able to cope? ..........thanks

 

Thanks will battle on, has to be an answer?

 

many thanks, perhaps a bit of British-Luck would help!