First thing I'd try is getting Dx7a (note the a, available at the direct x site.)  Then I'd probably try getting new drivers for your v card that are compliant with DX.  (This is probably your problem.)  One other thing, what is your screen resolution?  Try 800 x 600 at 16 bit color to begin.
I have an Intel i740 8 mb card, I had to get new drivers before AH would work.  This might be what's going on.
Hope this helps.
bloom25
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