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A better GPU with stable drivers will help you work with hardware acceleration enabled but it's not a priority imo. You can still start developing your game with your current computer. If you decide to get a new one please consult someone who can check your computer as it's old and very new GPUs won't work with it.
Glad it works for you now!Just one more thought: I remember I had a similar issue with a GeForce 6800 back then, so you might want to check, if your DirectX drivers are up-to-date or just simply update them by using the web installer, which should not hurt in any case:http://www.microsoft.com/en-us/download/details.aspx?id=35After installation and reboot, you might try to check the hardware acceleration checkbox again.