Problem with Compaq Presario 1260

I tried to run Starwars Pod racer game on this machine. The game installs without any problem, but when I try to run it, I get an error "3D Hardware not found".

There is no other explanation in the error window. READ ME file specifies that some of the drivers may not be working correctly.

Directx 6.1 has a testing tool. When I use the tool all the tests run OK. The only difference I noticed was that in the dignositc tool, the drivers
esfm.drv
and
esmpu.drv
are marked as not certified by Windows.

Per Compaq, this machine is supposed to have 3D Now Technology. If this is true, why am I getting this error ?

The game probably requires a video accelerator card which you don't have. 3D now technology is an AMD feature built into the processor. It has nothing to do with an actual video accelerator.