I ran the Direct3d test on my video and had some strange conclusions.
 
Hardware accelerated Direct3d 7 interface-no problems, the spinning box looked fine.
 
Hardware accelerated direct3d 8 interface-Box was slightly broken up, but not completely.
 
Hardware accelerated direct3d 9 interface-The spinning box was totally mutilated.
 
Im running a Radeon 9800XT(AGP).  I have downloaded and installed the latest drivers(for the card) and the latest bios for the MB.   Also, none of the games I play work in 3d anymore.  2d stuff works fine.
 
System specs:
 
P4 3.0mhz
1 gig ram
Radeon 9800XT
 
 
Any help would be appreciated.  Thanks.

Did you check to make sure the drivers were supporting your card? Have you tried older ones?

Yea, I tried older ones.  Tried some NGO ones also.  I got the latest drivers right from ATI/AMD site.  Im just baffled by it.  I have also installed windows XP 2x and reinstalled all drivers.  

Go here and download the latest DX http://www.tweakguides.com/

Thanks, ill give it one more shot.

I installed the DX and 8.3 drivers from the page you linked.  Now I get "No 3d device found" and the below posted message in Dxdiag.
 
No problems found.
To test DirectDraw functionality, click the "Test DirectDraw" button above.
Direct3D functionality not available.  You should verify that the driver is a final version from the hardware manufacturer.

Try a reboot. If that doesnt work, uninstall old driver, reboot, dont let windows install new driver, and download/install new driver from AMD

How do I "not let windows" install new driver??  Never done that before

Still no luck.  Still no 3d device found and:
Direct3D functionality not available.  You should verify that the driver is a final version from the hardware manufacturer.
 
 
Anyone with any other suggestions?

First uninstall ALL graphics drives. Then run Drive cleaner to get rid of all old versions. Link:
http://downloads.guru3d.com/download.php?det=745
 
Download the drives and boot in to SafeMode. Then try installing the drives, re boot and see.
 
Also make sure the card is not hot and not OCed too much.
 

Shadow, I tried what you suggested.  I ran into 1 problem though.  In safe mode, I couldnt install the drivers.  It said No hardware was found compatible with the the drivers, so it cancelled the install.  
 
So I came back into XP normal mode and then installed the drivers again.  Still no luck.  It says NO 3D Device found.  I cant even test it in DXdiag because direct 3d acceleration is not available.  
 
As for the card being too hot, I dont think it is, I use a couple monitoring devices and they are in the green.  
 
Also, what does OCed mean?
 
If anyone else has suggestions, I would be grateful.

OC means over clocked. Hold on Ill see if I can find something..

Have you or did you do anything at all before these problems started?

ok thanks.

Have you installed anything new on your system? USB devices or wireless?

Nothing new, however keep in mind that I did reinstall windows 2x and format 2x.

I just DL Aquamark3 and it says no graphics device is found also.  But then I check the Device Manager and its says the card is functioning properly.  Haha, This thing has me banging my head on the wall.

Remove the card, power off of course, then reboot without the card. Remove the driver too before rebooting. After rebooting, dont let windows find driver, shut down, reinstall card, reboot, dont let windows install driver, download driver and that should work

ok, ill give this a shot in the morning.   Ill post what happens when I try it.  Thanks again for the help.

yw

Gave your idea a shot.  Still no luck.  I got a message on reboot from microsoft after i did a error report.  It said something along the lines of Driver Error, reboot again or install drivers again.  So im going to try that now.

In the BIOS did enable AGP ?