I have similiar issues on Win2k, you'll probably NOT like my answer tho.
REFORMAT, REINSTALL. (it worked for me).
I actually upgraded my video card and changed to XP at the same time, What I was able to deduce was it was EITHER something in the drivers or DX *OR* the amount of video memory that was causing the issue. Since I knew I wanted to changed video cards anyways I got a new HD, XP and the video card. Then I installed the new HD video card and put down a fresh XP install and I *NEVER* see that error anymore ( the old video card was had a mere 64 megs of memory, new one has 512 megs, it's the last one this system will ever see). Oh I had to put in a beefier power supply to allow the card to run as well, shrugs.
I was never real sure if it was the software side or the card itself causing it, just happy I never see it anymore :^)
If you have a spare HD you can try a fresh XP install on, that might be the thing to do first.
You don't say how much memory your card has but assume it's more than mine had.
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Edits are for spelling :^)
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