compatible direct3d devices?

Hello-

Does anybody know why we are getting these bogus messages from windows XP?

system: HP XW4100 pentium4 3.0GHz with Nvidia Quadro4-380 XGL graphics
driver: 52.16 and 56.72

attempt to use 3d Windows XP screensaver: "could not find any compatible
direct3d devices"

run dxdiag: all Direct3D tabs are greyed out.

Hardware Acceleration slider is already at "Full",

Already searched google and tried all suggestions, nothing gets Direct3D
back. Many people have experienced this problem, no solution in sight. These
are new systems, there is no reason that we should be seeing "could not find
any compatible direct3d devices" messages!

Thanks
PS