The problem isn't video memory, it's who makes your video card. Intel graphics blow, period. I remember Morrowind needing like 64MB when it first came out. In fact it ran like crap on my GeForce 3 which had 64MB. It was one of the first games to use pixel shading pretty heavily. I got these system requirements from planetelderscrolls.com
Minimum system requirements:
Windows ME/98 128 MB RAM; Windows XP/2000 256 MB RAM; 500 MHz Intel Pentium III, Celeron, or AMD Athlon processor; 8x CD/DVD-ROM Drive; 1 GB free hard disk space; Windows swapfile; DirectX 8.1 (included); 32MB Direct3D Compatible video card and DirectX 8.1 compatible driver; DirectX 8.1 compatible sound card; Keyboard; Mouse
Recommended:
800 MHz or faster Intel Pentium III or AMD Athlon processor; 256 MB RAM; NVIDIA GeForce2 GTS, or ATI Radeon 7500 or faster video card.
Notice Intel is absent from the recommended list. Always go by the recommended requirements, not the minimums. And if you want to play a game, buy a new video card that has either ATI or nVidia stamped on it.