Just bought FO3 GOTY for my new laptop, starts up fine but crashes when try to start new game. Read various forums and only problem i can see is my graphics card. I thought it was sufficient (or obviously wouldnt have bought game) but maybe i was wrong.

I'm running windows 7 and the driver is a Intel® Graphics Media Accelerator HD (Core i3). Is that why i cant play..?

Yes, that's why you can't play. That's not a real graphics card, but rather a mere Integrated Graphic Chipset. This game doesn't support any of them from Intel....they're underpowered and not meant meant for games. Being that this is a laptop, upgrading that to a a more powerful graphics card/chipset is likely not going to happen.