That message basically means your graphics setup is not up to running the game. You will need a fairly decent graphics card (as well as a beefy CPU running at least 3 cores) to run that game as it requires a very strong PC to run and doesn't scale down to lower spec PCs at all.
In answer to your topic title - can I run GTA4 without an nVidia or ATI graphics card - the answer is hell no! You need a good graphics setup for this game and no integrated graphics will come close to being good enough.