My new laptop computer has almost the same exact video card in it, I haven't had any problems running any versions of UFO: AI on it, although one of the first things I did when I got it was to update all the drivers and other software components.
I noticed in the logs posted that the OpenGL version only went up to 2.(something). Some of the other reported info in the logs also showed lower numbers than what I get when I run the game on my machine.
The latest ATI drivers, direct from AMD (NOT Windows update, and NOT the out-of-the-box drivers when I got the machine) run OpenGL up to 4.1.(something) - assuming I'm looking at the right numbers.
I have a feeling that this problem may disappear after updating to the latest drivers. (Apologies if I'm confusing this with a different cause of the problem.)
Side Note: I'm wondering if the Windows installer should include a very simple little test/reporting utility that will notify the end-user if they haven't gotten the proper drivers for their video card. I've just seen so many Windows users who don't know that they need to update their video drivers, or they mistakenly get them from Windows update, or buy a new computer and run things without updating anything first. Would it be too difficult for a simple little detection utility that can make a pop-up message come up, when installing the game, if old or inadequate OpenGL support is detected?
It would really cut down on people coming to this forum with issues, or complaining about poor performance, etc.