Thanks to matt who tried to help but I eventually found the issue after a few days. It turns out my vid card drivers were not outputting directX like I thought they were. I found out the issue when I was using microsoft virtual earth and it said that my drivers weren't working with directx when I attempted to go to 3D mode. I then tried EVERY driver I could but the only ones that would work were the ones with the CD I got(8.4). It turns out that the other ones wouldn't recognize my hardware because they didn't get updated for my AGP card. So I searched for a way to get them to work and I found this on a forum
HD 2600 PRO AGP - driver problems - Phoronix Forums
It was a bit confusing at first but when executed properly it solved EVERY problem and I was able to run the directx diagnosis tests with no problems when I installed 8.3 ATI drivers(finally!). I hate ATI for making me go through all this bull **** but now I'm happy ^_^. Someone REALLY needs to post that method on these forums though because this issue had been going on for the months that I installed this vid card and JUST NOW I fixed it >_<. Thanks again and you can now mark this as resolved I believe.