OpenGL 1.1 means software rendering, meaning that hardware acceleration is not working. You need to get a current Intel graphics driver which works for your Intel graphics chipset and your operating system (and it's version). 1.5 GB total system RAM is not much either. Windows will eat 500 MB, leaving only 1.0 GB for MegaGlest. This will work for small games but you will get into trouble on any medium or large game, much more so because the Intel hardware is not meant to be used for this type of game, but for office computers, 2D graphics and simple videos.
So my short term suggestion is: Try to get a working driver which gives you proper OpenGL support for the (yet unknown) Intel hardware you have there.
And the mid term suggestion is: Buy a new computer with a dedicated (ATI or NVidia) graphics chip or a current Intel (latest generation, GMA 3500 or 4000 - those are both affordable and provide just enough performance). And get a fully supported operating system, too (mainstream support for XP ended in 2009, extended support for XP SP3 ends on April 8, 2014).
Edit: This is not a bug since you are trying to run MegaGlest on a system which does not meet the system requirements. I'll move it to the main forums. Please don't file support requests in the bug forum.