MS Virtual PC 2007

I took the advice to set up MS VPC2007 in lieu of going the multi-boot route, and I'll have to say that I absolutely love it. I think it actually runs Win98SE smoother than any hard drive I've ever used it on. HOWEVER, my primary purpose for wanting to use multiple OS's is for accomodating some of the older classic games that use DOS, Win95/98, etc.

One game in particular that I tried to install last night was System Shock 2. It installed the game fine, but when I tried to start the game, I got an error message saying "Your video card is not compatible with SS2." Then the game closed, and I was returned to the desktop. What's strange is that when I tried to play the cut scenes individually straight from the disc, they played beautifully. After doing further research online about it, I came to wonder if the problem just had to do with VPC's lack of support for Direct 3D. Am I close on that?

Can anyone give me any advice on this, because I will go back to the multiboot idea if that is the only way I will be able to play those older games? Thanks.
Yes, VMs arent a good idea for gamers. In situations like this you'll need a physical install to partition.
Have you tried DOSBox or one of the many other things like it to run those old games in XP/Vista?