Hello pheonixchain,
I'm afraid your pc only has about half the required RAM needed to play the game properly.
Also your graphics card is below specs, you need at least a ATI 9600 PRo.
Also, you might want to look at your drivers.
Your grahpics driver is from early 2005, so I suggest you look at that. You can just google it, type in your card's name and "driver" and you're bound to find what you're looking for. (It wont help this game much, but is an allround wise thing to do anyway)
Your sound driver is from 2003, you could try to find a newer one for that aswell. Same principle, if you are not sure where to find it, google will point you in the right direction. (It wont help this game much, but is an allround wise thing to do anyway)
I'm afraid this game will run only properly if you get a better graphics card, increase the RAM and install up to date drivers.
There's not much you can do to get a game working properly unless your system meets the required specification, unfortunatly
See this (http://www.shipsim.com/features/gameplay.php). (Bottom of the page)
Regards,
Fred
* Terry! Doh!