Comp game lag problems

Comp is running great except now my graphics card is acting up with XP. This is a brand new video card that is only a few months old that I got so Vista would run smoothly. The graphics look fine except when FFXI comes on. It still looks dotty and now I get the following error:

"Terminated as an error occurred in FFXI. Failed to initialize Direct 3D. Please check that this computer has the required specifications to run FFXI (-1)"

Never got that when I installed it with Vista. I just looked at the box for my videocard and it says "Vista ready". The graphics card I have is: http://ati.amd.com/products/RadeonX1300/index.html

Looking to see if they have a updated driver or something along those lines.
 
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