The graphics solution listed up there in Spike's post indeed is an "embedded" or "motherboard" proceesor, dependent on system memory and CPU power. Given the reported available system memory, the video adapter apparently "shares" (actually, more like appropriates) only 8MB of memory. That simply is inadequate to the task of delivering a satisfactory user experience with many of the graphics-intensive games available today.
It is possible, though I think unlikely, that downloading and installing the latest
DirectX Runtime might help. Some performance improvement
might be gained by visiting Intel's product support pages to obtain the latest available drivers and/or software for the product, though in this case I doubt even that will be much help.
An actual stand-alone hardware graphics solution, a video card, is the most likely route to satisfaction in this instance, provided the machine supports addition of one. If the machine is a laptop, you're pretty much screwed. If its a desktop, you may be in luck in fact, you prolly are. Video cards based on AGP, PCI, and PCI Express are readilly available and relatively cheap - just be sure the machine supports whatever you choose. I would recommend a card with at least 64MB of onboard memory, with a strong recommendation for 128MB or greater.