Hellgate is a very new game and according to wikipedia your GPU is the minimal supported
Requirements Windows XP or Windows Vista, 1.8 GHz(XP) or 2.4 GHz(Vista) Processor, 1GB RAM(XP) or 2GB RAM(Vista), NVIDIA GeForce 6200/ATI Radeon 9000 chipset or greater, 6GB Free Hard Drive space, DirectX 9.0c compatible sound, Internet Connection required for multiplayer
http://game.amd.com/us-en/drivers_catalyst.aspx?p=xp/radeonx-xp
the latest is 7.10 we've been through .1 -> .9 already, maybe you got this muddled up (easy to do)
There are new DirectX for nov out now too
http://www.filehippo.com/download_directx/
DirectX 9.0c (Nov 07)
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