KC,after a lengthy call to the support line i got a solution (yay!). First,try playing in safe mode (go to start>programs>microsoft games>msfs2004>troubleshooting>safe mode). If it works fine then,than all u need to do is download the driver from intel.com. heres how:
First,go to start,and run. type in "dxdiag" without the qoutes.hit enter,and you should get some window open.then at the top, go to display.in the top left box,look at chip type (says something like Intel (R) 82865G Graphics controller). Write that down-you will need it later.
at the top is a button saying supports and downloads. put your cursor over that,and go to download center. then on the right,click on graphics.Go to desktop graphic controllers,and choose the one that matches your chip type. then select your operating system,and then go onto downloading the latest driver on there (the one on top). save it to your desktop. Then when its finnished, open it and follow directions. Then reboot and your off to fly into the wild blue yonder without them error message