Trainz Railway Simulator 2004 - Again

Hi. I recently installed Trainz on my new pc; it had been on my old one, and working fine(after stopping the intro playing; thanks to CR4 members). After choosing the scenario to play, and it loading it comes up with an error reading:
"A Fatal error has occured.

Description:
Class: Hardware
Reason: Access Violation
Exception @ 691D01A6 In C:\WINDOWS\System32\atioglx.dll
Recoverable exception: Yes
EAX: 00000000 EBX:00000000 ECX:00000502 EDX: 01653A94
ESP: 055DF1B8 EBP:0C47D15C ESI: 100CA98C EDI: 100CA958

DS:00000023 FS:0000003B
ES:00000023 GS:00000000
SS:00000023 CS:EIP: 001B:691D01A6
Flags: 00010202 (CF:0 ZF: 0 SF:0)
Call Stack: 691D01A6 - 00000001 (+1CF1A6) C:\WINDOWS\System32\atioglx.dll"

My Specs:
Phenom 2.3GHz x4, ATI Radeon EAH3450 2Gb RAM
Windows XP Pro.

It was previously running on Core 2 Duo 1.8GHz

1GB RAM

ATI 256mb Graphics card (not sure of model)

Windows XP Media Centre Edition

AND: Pentium 4 2.4GHz

256mb RAM

Not sure of video memory (Onboard)

XP Home
How could I get the sim to work?

As far as I know, all my drivers are up to date, but the game is 5 years old, so that shoudn't be too much of a problem (I think?)