I prefer ATI myself, as NVidias drivers have been unstable for me at many times. Upgrading your graphics card alone probably won't make much of a difference with performance, as your CPU and RAM is also lacking. As we've turned off all the bells and whistles, I don't think upgrading it will make EB work either.
Comparing against my own starting a campaign, your game quits after reading everything to do with diplomats and before reading anything concerning spies. I notice you still have spaces in your folder structure. Please try to rename the C:\Europa Barbarorum 1.0 folder to C:\EB10, if you didn't before. I don't expect it to work, but it can't harm to try.
Also, you should probably install 0.81aV2 again, and compare the preferences there (if it works, of course!) with what you have now. Try to copy the preferences from there too. At the very least we can eliminate that from the list of suspects.
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