Windows 7 - Just bought Elder Scrolls IV GotY Deluxe error after click play?

Hey, I just bought Oblivion Game of the Year Deluxe and it installed great but when I went to play it, said something about not finding the graphics card and set all my settings to medium and when I hit the play button, it crashed with the "Oblivion has stopped working A problem caused the program to stop working correctly. Windows will close the program and notify you if a solution is available." error message. I bought the game off of the gamestop website. I just got this computer for Christmas so I haven't really had time to upgrade some of the things I want to, but the specs are

DxDiag.txt

I'm not really sure what the problem is, any help much appreciated.

Sorry to say it but your machine specs are way bellow minimum requirements when it comes to your graphics card. You are running Integrated graphics meaning the graphics processor is n the motherboard itself.

Here is what you have: Chip type: Intel(R) 4 Series Express Chipset Family\\ Dedicated Memory: 64 MB

The game needs a minimum of 128MB of Dedicated Memory for the GPU (Graphics Processing Unit) "Graphics card".

Solution: You need to purchase a Dedicated Graphics card. You can find a good one, that will last a while before needing an upgrade, for around $150-$180 USD. Try looking at Newegg.com , Tigerdirect.com , Mwave.com for prices and models. Do Research Before Buying.

All other specs seem Ok from what i can tell. Hope this helps.

EDIT: Also run the game in compatibility mode of XP Service Pack 3. the Game is Known to have issues with Windows 7. This will only help after you update the GPU.