In dxdiag the spinning cube test it shows the dodgy graphics.
I think it is on its deathbed too.  Its been great for me, then my brother used it for a few years afterwards, so it wouldnt surprise me.
Im going to sort it out this weekend a new card will be easy £45 without having to play around with anything else.  Getting vista, a new HD and the card will be more like £150 which i'm reluctant to pay for something i'm not going to use 

.
Does the x1550 need a huge power supply though?  It isn't latest generation but more than enough for her needs so i'm hoping the current PSU will handle it.