Try this, download and install Intel's chipset INF driver, ATI's Catalyst drivers (version 3.7 or greater) and Microsoft's DirectX 9.
http://www.intel.com/design/software...atform/inf.htm http://support.ati.com http://www.microsoft.com/directx
Once installed, verify again with dxdiag.exe. If it still lists no AGP acceleration, goto your BIOS setup menu at boot. Disable AGP fast writes, set the AGP aperature to 1/2 your memory (or greatest setting), and drop the transfer rate to 4x. Drop the transfer rate to 4x for ATI's SMARTGART control as well.
The Intel E7205 chipset features a few signal timing issues that don't meet the AGP 3.0 specifications. The tVALmin or data valid window are slightly skewed in early revision chipsets, thus meaning AGP 8x transfers are not recommended if you have an early revision motherboard. The latest Intel Chipset driver works to correct these issues, but it does not work in all cases, thus forcing a 4x AGP rate to be used.
As to any performance difference between 4x and 8x, it is not appreciable enough to even detect outside of synthetic bechnmark testing. Frame rates in most games may change by 1-2%, especially since you Radeon includes 256MB of onboard memory.
Hope this helps,
Robert Richmond