Did you try the "disable internal MWSE" option? That made it work for me. But, I don't run any mods that use MGE XE's internal MWSE. If you do, you might not be able to use those mods.
Also, with that card, make sure you are using pixel fog and not vertex fog.

Hrnchamd notes in the MGE XE thread "requirements: Shader Model 3.0+ graphics card; integrated graphics probably won't work"

You can probably find your chip's specs to see if it supports that shader level

Although I've uses several laptops with it (3), and one was bought in 2008, had 218 megs of Vram, and was $400. However, a lot of motherboards REALLY skimp on integrated graphics, i.e. just enough to boot. I would reccomend looking up your motherboard and finding the graphics card it uses.