DVD Overlay Error, direct 3d inactive

I recently aquired a compaq evo laptop with mobility radeon 7500 grafix card, Running win2k sp2 I keep getting the overlay error when ever i try to watch dvds in windvd, ive tried all the usual screen res and colour depths but to no avail.

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I recently aquired a compaq evo laptop with mobility radeon 7500 grafix card, Running win2k sp2
 
I keep getting the overlay error when ever i try to watch dvds in windvd, ive tried all the usual screen res and colour depths but to no avail.
 
When i run dxdiag i cant test the direct3d facility and it is shown as disabled along with AGP. Im assuming this is the problem but still dont know how to fix it?
 
Any help would be much appriciated, im pullin me hair out!

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