Okay, this is the only thing that might help if you haven?t already tried it (install in this order):
These are the newest drivers for your Intel chipset
These are the newest drivers for your onboard Intel graphics (these fixed a lot of issues for my friend Colleen who couldn?t play UT in OpenGL before)
If you have both of these already and you still encounter the issue, you may need to go into your computer?s BIOS and increase the amount of ram allocated to the onboard graphics (it?s probably set to 64mb judging by your system specs, which should be more then enough).
My best guess is, if the newest video and chipset drivers don?t correct the issue, you may want to look into a small video upgrade to a Radeon 9000/9200 or GeForce MX 4xx series card (probably PCI, as you most likely don?t have an AGP port in your machine).
Let me know how it goes, good or bad!