Here's the console output:
---- filesystem initialization -----
Adding game dir: ./base
Added packfile ./base/0base.pk3 (4 files)
Added packfile ./base/0maps.pk3 (461 files)
Added packfile ./base/0media.pk3 (8 files)
Added packfile ./base/0models.pk3 (1231 files)
Added packfile ./base/0music.pk3 (35 files)
Added packfile ./base/0pics.pk3 (1577 files)
Added packfile ./base/0snd.pk3 (131 files)
Added packfile ./base/0ufos.pk3 (73 files)
using C:\Documents and Settings\Max\Application Data\UFOAI/2.2/base for writing
Adding game dir: C:\Documents and Settings\Max\Application Data\UFOAI/2.2/base
execing default.cfg
couldn't exec config.cfg
execing keys.cfg
----- network initialization -------
libcurl/7.16.4 zlib/1.2.2 initialized.
------ server initialization -------
----- console initialization -------
Console initialized.
------- video initialization -------
SDL version: 1.2.11
I: desktop depth: 32bpp
I: setting mode 6: 1024x768 (fullscreen: no)
I: got 8 bits of stencil
I: got 32 bits of depth buffer
I: got double buffer
I: got 8 bits for red
I: got 8 bits for green
I: got 8 bits for blue
GL_VENDOR: Microsoft Corporation
GL_RENDERER: GDI Generic
GL_VERSION: 1.1.0
GL_EXTENSIONS: GL_WIN_swap_hint GL_EXT_bgra GL_EXT_paletted_texture
No hardware acceleration detected
Shutdown
The thing is, I have a Radeon 2400. Seriously. I've gotten the same results with safe mode.