That would be the S3 video chip. I am surprised it runs the game at all. Make sure you have the latest drivers for it, and use the folliwing in-game settings.
Resolution:800x600, no higher
Maximum Texture Size: 128
If hardware vertex option is available, try it, but it may be the cause of the problem as S3 has had a broken implementation of hardware vertex processing and I am not sure if they fixed it.