You solved the first problem -- not enough video memory. The game requires at least 16 MB.From what you've written I'm presuming that you're working with an older system. I had a similar problem when I tried to set up GeForce 2 card on a system using VIA's MVP3 chipset. There's some sort of conflict with the newer NVidia drivers which really drags down the graphics performance. Neither nVidia nor VIA take responsibility for it.
If this is the case then you'll need to revert to the 6.18 drivers. You'll need to make sure all the new drivers are thoroughly cleansed from your system. You can find instructions for this at one of the websites that specialize on solving graphics problems.