Direct 3D not initializing for FFXIFollow

When I start FFXI from the POL viewer, I get an error message reading:

"Terminatedas error occured in FFXI. Failed to initialize Direct 3D. Please check that this computer has the required specifications to run Final Fantasy XI."

Processor type/speed: AMD athalojn 2200+, MMX, 3dNow, ~1.80GHz
Total Hard drive space/Free hard drive space: 30/7.52
Amount of Ram:512 MB
Video card type:Radeon 9500 pro/9700
Operating system: Windows XP
Computer model number (if it has one):A7N8X2.0
frequincy of problem: Every time I try to start FFXI

And, added information: Whne I tested the Direct3D with Direct X diagnostic, it worked for each test.

Thankyou in advance for anyone who can help.