whenever i try to play i get planes and objects completely black as well as scenery out of place here's my DxDiag

System Information
------------------
Time of this report: 3/5/2007, 21:43:37
Machine name: YOUR-88ACD1D07C
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Language: English (Regional Setting: English)
System Manufacturer: GATEWAY
System Model: T3408
BIOS: BIOS Date: 12/15/04 23:53:45 Ver: 08.00.10
Processor: Intel(R) Celeron(R) CPU 2.93GHz
Memory: 494MB RAM
Page File: 420MB used, 734MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
DxDiag Version: 5.03.2600.2180 32bit Unicode

------------
DxDiag Notes
------------
DirectX Files Tab: No problems found.
Display Tab 1: No problems found.
Sound Tab 1: No problems found.
Music Tab: No problems found.
Input Tab: No problems found.
Network Tab: The registry information for the DirectPlay application 'Superef' is missing or damaged. You should reinstall that application.

--------------------
DirectX Debug Levels
--------------------
Direct3D: 0/4 (n/a)
DirectDraw: 0/4 (retail)
DirectInput: 0/5 (n/a)
DirectMusic: 0/5 (n/a)
DirectPlay: 0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow: 0/6 (retail)

---------------
Display Devices
---------------
Card name: Intel(R) 82865G Graphics Controller
Manufacturer: Intel Corporation
Chip type: Intel(R) 82865G Graphics Controller
DAC type: Internal
Device Key: Enum\PCI\VEN_8086&DEV_2572&SUBSYS_4043107B&REV_02
Display Memory: 96.0 MB
Current Mode: 1024 x 768 (32 bit) (75Hz)
Monitor: Plug and Play Monitor
Monitor Max Res: 1600,1200
Driver Name: ialmrnt5.dll
Driver Version: 6.14.0010.3889 (English)
DDI Version: 9 (or higher)
Driver Attributes: Final Retail
Driver Date/Size: 8/20/2004 17:11:36, 37951 bytes
WHQL Logo'd: Yes
WHQL Date Stamp: n/a
VDD: n/a
Mini VDD: ialmnt5.sys
Mini VDD Date: 8/20/2004 17:26:00, 737874 bytes
Device Identifier: {D7B78E66-6632-11CF-FA7C-4960A3C2CB35}
Vendor ID: 0x8086
Device ID: 0x2572
SubSys ID: 0x4043107B
Revision ID: 0x0002
Revision ID: 0x0002
Video Accel:
Deinterlace Caps: n/a
Registry: OK
DDraw Status: Enabled
D3D Status: Enabled
AGP Status: Not Available
DDraw Test Result: Not run
D3D7 Test Result: Not run
D3D8 Test Result: Not run
D3D9 Test Result: Not run

I'm no PC expert, but from a brief look at your dxdiag, it seems your system has a built in graphics chip(?) rather than a pukka graphics card. That is most likely what is causing your problems.
The minimum system specs on the Lockon box are optimistic at best, downright wrong at worst. Your CPU looks OK, but you need a decent graphics card for serious gaming/Sims such as Lockon, those built in graphic chips are not up to it.

Also I'd say you need a min of 512 Mb RAM preferably 1024.