Program requires hardware T&L and stencil support (thus 32bpp desktop!). OpenWindow failed

Hi Experts,
I have purchased a new game. While playing the game I received and error message. It is asking for T&L and stencil support. However, I am using latest drivers on my machine. What type of error message is it? I do not understand the error message. If you have any idea for the issue, please help.
Thanks in advance.

ERROR
The program requires hardware T&L and stencil support (thus 32bpp desktop!). OpenWindow failed.
