Okay, I got it working...only thing is I did several things at once so I'm not sure which did it - but here's what I did:
1. I did a search on the folder c:\windows\inf (c:\winnt\inf if running 2000/nt). I searched for files containing the word catalyst (because I have an ATI) and deleted what I found.
2. I uninstalled my video drivers via add/remove programs.
3. I opened device manager and uninstalled my display adapters.
4. I rebooted.
5. When windows found my new hardware it couldn't find a driver for it (because I deleted the .inf files) so it listed it as vga with an exclamation point.
6. I went to AMD's site and downloaded and installed this registry fix:
It says it's only for Windows 9x/Me/2000 and not for XP but I used it anyway (I'm running 2003 server).
7. I went to Microsoft's site and downloaded directx 9.0a (even though I already had it installed). I got it here:
It's very important you download directx from that link because we need all the files for the next step (the normal download installs dynamically and won't help us).
8. I extracted the directx files to a folder and then I right clicked each cab file and extracted it's contents to a folder also (don't do the one ending in 98 if you're on 2000 and don't do the one ending in xp if you're on 98). I then went through each folder and right clicked on every .inf file and chose install. If you get an error on any of them it probably means your in a folder meant for a different OS so just go to the next folder.
9. After that I clicked on the Directx setup.exe and reinstalled Directx rebooting when prompted.
10. I reinstalled my display drivers rebooting as prompted.
11. I ran dxdiag and agp texture acceleration was enabled.
Before doing these steps I tried maybe 15 times uninstalling/reinstalling my drivers and reinstalling directx - I really think it was clicking on all the .inf files that did it but I can't be sure. Please let me know if you try this if it works for you. My e-mail is nicholaspstaff@hotmail.com
Thanks,
Nick