teersen, you obviously have some broken video there. The OpenGL issue you mention,
Error creating texture 2D, is one I also had (on Linux) when I had some bad video drivers installed for my ATI X1650 (RV560) video card.
You also have an outdated and now unsupported version of your operating system installed. Consider upgrading to the latest Windows XP service pack (also for security reasons, this is very much recommended), and see if things are still wrong for you then. If they are, please check whether an updated video driver is available for your video card. See
http://faq.megaglest.org/ on the topic of how to get updated video drivers also for old hardware.
If it's still an issue then, please report which version of Windows you are on then, which video card you are using, and whether this or similar obvious video issues also occur on other games for you (please test some other games which make use of 3D video). Please also report about your other hardware constraints (RAM, CPU) then.