For starters make sure your direct9c is fully updated. Updated files can be found here:
http://www.microsoft.com/downloads/e...displaylang=en
I see several things that might cause your problems. Lack of video and system memory are your biggest issues. The lack of video memory is more of an issue than system memory in this case. Another serious issue I saw was that your GPU driver version date postdates the discontinuance of your graphics card by two years. More information on that:
http://support.amd.com/us/gpudownloa...legacy-xp.aspx I know companies such as Dell sometimes have specialized driver sets for their computers but to continue to support a product two years after it has been discontinued is pretty hard to believe.
I won’t say that it is impossible to run Everquest on that computer setup but a few upgrades would go a long way towards smoothing out some problems. Just getting a newer graphics card would likely fix several things.
Some older motherboards allowed you to set your agp aperture size in the bios and while ideally you would set this to the memory size of your graphics card it can be used to force the system to use system memory for video memory. This usually isn’t the best solution for lacking video memory as you will take a hit on system memory and processor usage but it can be used to get you through a tight spot. If this option is available to you then set your agp aperture size to atleast 64mb.