This is why. Almost none of the intel graphics chipsets can run this game. And since you're on a laptop, you can't upgrade.
This game is NOT Oblivion, so it will surely fail on that Intel graphic chipset this time around.
Aside from being incredibly weak, Intel Integrated Graphic Chipsets tend to cut corners on shaders and required features that will not fool the game. These chipsets are not designed for gaming, but rather internet surfing and basic usage. They're all too common with notebooks and dirt cheap off-the-shelf PCs.
There is a dirty fix floating around to alter a .dll file to get these chipsets to work with the game, but I'm getting tired and reluctant of suggesting something to force the chipset to run it. These chipsets are not designed to take the stress that this game would put on it....you're potentially killing the life of the chip. Aside from that, altering a .dll file can potentially bork your operating system down the line as well.
On top of that, NO ONE has gotten the game to run on these things without that dirty hack.
Except the shaders are usually 'faked' via the drivers rather than the hardware, hence why Fallout 3 doesn't belive it has 4.0 and won't run. Plus the Intels lack the horsepower didn't for serious gaming, hence why MW2 didn't run well.
Your problem, as already stated in here, is that Intel Integrated Graphic chipset...that is all. Being that this is a notebook, you're likely not able to upgrade it to anything else either.
I run the game fine on Windows 7 SP1 beta. Its your video chipset. Its too weak to play the game. And the requirement for FO3 is slightly higher then it is for Oblivion. Oblivion needs shader 2.0 and FO3 needs 2.0b to play. People with 1GB of RAM have ran the game before. Its your video chipset like we have stated before. And Canyourunit.com is very inaccurate as Intel "fakes" the shaders for the chipset. We have seen this problem over and over again since launch, its the chipset, not the RAM or the OS.
This is purely your INTEL INTEGATED GRAPHIC CHIPSET being the failure. This...is...not...a Win 7 issue. I don't know how many times we have to tell you that. And New Vegas is going to be lovely with Win 7.
I've decided to take a gamble and buy it... waste of money it comes up fine but when i click on New game it crashes... bum
......I give up.....I mean wow...just WOW.