Intel Corporation 82852/855GM Integrated Graphics Device Desktop effects could not be enabled - 700m

Warning! I am a Linux virgin, please take it easy on me.

Based on some similar posts I have not been able to resolve the issue.

Here is what I get when i run "compiz":
Screen blinks, switches focus between windows and then prints the following:
compiz (core) - Fatal: Software rendering detected.
compiz (core) - Error: Failed to manage screen: 0
compiz (core) - Fatal: No manageable screens found on display :0.0

Launching fallback window manager
------------------------------------------------------------------------

Here is my "dpkg -s compiz; lspci; glxinfo | fgrep :" output:

Package: compiz
Status: install ok installed
Priority: optional
Section: x11
Installed-Size: 64
Maintainer: Ubuntu Core Developers <email address hidden>
Architecture: all
Version: 1:0.8.6-0ubuntu9
Provides: x-window-manager
Depends: compiz-core (>= 1:0.8.6-0ubuntu9), compiz-plugins (>= 1:0.8.6-0ubuntu9), compiz-gnome | compiz-kde, compiz-fusion-plugins-main (>= 0.8.6), libcompizconfig0 (>= 0.8.4-0ubuntu3)
Suggests: compizconfig-settings-manager
Description: OpenGL window and compositing manager
 Compiz brings to life a variety of visual effects that make the Linux desktop
 easier to use, more powerful and intuitive, and more accessible for users
 with special needs.
 .
 This metapackage provides the components necessary for running compiz. It
 provides the compiz core, a set of standard plugins, a window decorator using
 the Gtk toolkit and the files necessary to integrate compiz with the GNOME
 desktop environment.
Original-Maintainer: Debian X Strike Force <email address hidden>
00:00.0 Host bridge: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:00.1 System peripheral: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:00.3 System peripheral: Intel Corporation 82852/82855 GM/GME/PM/GMV Processor to I/O Controller (rev 02)
00:02.0 VGA compatible controller: Intel Corporation 82852/855GM Integrated Graphics Device (rev 02)
00:02.1 Display controller: Intel Corporation 82852/855GM Integrated Graphics Device (rev 02)
00:1d.0 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #1 (rev 03)
00:1d.1 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #2 (rev 03)
00:1d.2 USB Controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) USB UHCI Controller #3 (rev 03)
00:1d.7 USB Controller: Intel Corporation 82801DB/DBM (ICH4/ICH4-M) USB2 EHCI Controller (rev 03)
00:1e.0 PCI bridge: Intel Corporation 82801 Mobile PCI Bridge (rev 83)
00:1f.0 ISA bridge: Intel Corporation 82801DBM (ICH4-M) LPC Interface Bridge (rev 03)
00:1f.1 IDE interface: Intel Corporation 82801DBM (ICH4-M) IDE Controller (rev 03)
00:1f.3 SMBus: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) SMBus Controller (rev 03)
00:1f.5 Multimedia audio controller: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) AC'97 Audio Controller (rev 03)
00:1f.6 Modem: Intel Corporation 82801DB/DBL/DBM (ICH4/ICH4-L/ICH4-M) AC'97 Modem Controller (rev 03)
02:01.0 Network controller: Intel Corporation PRO/Wireless 2200BG [Calexico2] Network Connection (rev 05)
02:04.0 CardBus bridge: Texas Instruments PCI7420 CardBus Controller
02:04.1 CardBus bridge: Texas Instruments PCI7420 CardBus Controller
02:04.2 FireWire (IEEE 1394): Texas Instruments PCI7x20 1394a-2000 OHCI Two-Port PHY/Link-Layer Controller
02:04.3 Mass storage controller: Texas Instruments PCI7420/7620 Combo CardBus, 1394a-2000 OHCI and SD/MS-Pro Controller
02:05.0 Ethernet controller: Broadcom Corporation BCM4401-B0 100Base-TX (rev 02)
The program 'glxinfo' is currently not installed. You can install it by typing:
sudo apt-get install mesa-utils

Please walk me through this.
I am very good in Windows environment, but Linux is another story.

Thanks