Your video card isn't powerful enough to run that mod. It isn't really powerful enough to run regular GTA IV at anything but the lowest possible settings. You also don't have nearly enough RAM for GTA IV, GTA IV can use 2GB just on its own, your OS will use half of your RAM, leaving you with just 1GB for the game.
You need at least 4GB of RAM, and a better video card if you want to run GTA IV well.
If you really want to install ICEnchancer, make sure you have the game patched to version 126.96.36.199. The mod has problems with other patch revisions. Be warned, it will likely reduce your game to a literal slideshow. Your hardware just won't cut it.