Intel make the "on-board" graphics chipsets. They're just about good enough for office work. But they aren't supported in many games because they simply can't do what is needed. You could just about run Ship Simulator with one of the latest Intel chipsets, but some missions wouldn't work at all and may would have strange video effects ("grid" instead of the sea, missing bits & pieces) as well as a probably jerky or distorted images.
So far as I know, Intel don't make actual graphics cards. But they do make very good chipsets for the PC itself. As do Nvidia.
OK, moving to your PC:
(1)
Your processor looks fine.
(2)
You've "only" got 2GB of memory.
More memory is
always a good move, up to 4GB on 32 bit Windows. (Windows won't actually see the last 0.4GB or so, but I personally feel that's acceptable so that I get the 3.6GB that it can see).
(3)
I suspect that you could improve the gaming performance by having a different video card.
For Ship Sim 2008 and Pro, the Nvidia 8800GTX seems excellent, and the 8600 range is also excellent value for money. I can't tell the difference, other than the 8600 versions are less expensive than the 8800. But either is good.
Just check carefully to make sure that the version you get (if you do) does not "share" memory with the PC. You need to check very carefully. It isn't easy to figure it out. If you're unsure, get the seller to confirm that it doesn't. Then if it does, you can get them to fix the problem.
(4)
As a quick and easy thing to do, you might want to consider updating the CODECs on your system. From what I can see, I think you have the Windows defaults. There are plenty that are better (and free). Take a look for "CODEC" in my posts in Technical Support and you'll find links in many of them.
If you do have the latest ones already, then you'll just waste a few minutes. Otherwise, you may find it makes quite a difference.