However, the error you're getting says it's a hardware issue. Which means it might not be recognizing your video card perhaps? Probably a good idea to upgrade it if you can afford to do so though. Windows 7 would probably perform better (especially with Aero on) with a more modern GPU.
The Windows 7 version is 64 bit. I reinstall it, downloadet once both driver, 258.96 and 197.45 but it is the same problem. But what is interesting, the Device Manager do not recognize Display Adapter. In the System Information file this is empty.