The chipset doesn't support DX10, so you must be mistaking something here.
These chipsets aren't puny weaklings, but they're far from on par with dedicated solutions that were available at the same time. They're designed for entry level machines where the focus isn't games, and have ALWAYS been a huge disappointment to anyone trying to play games as even if they will run a game, their performance is well.......very crappy in comparison to a dedicated card.
A PC game is designed with software rendering methods and the full spectrum of DirectX instructions implemented for "compatibility" sake.
An emulator is an entirely different beast, and the developers aren't worried about full support even in software rendering modes and almost always only support direct hardware methods for things like shaders (Keeps code minimal for starters), which your Intel chip does not support.
Some food for thought, Intel's previous IGP Chipset didn't even support Hardware Texturing and Lighting, something dedicated cards have supported for over a DECADE now.
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GMA 3000
The 946GZ, Q965 and Q963 chipsets use GMA 3000.[3][4] The GMA 3000 3D core is very different from the X3000, despite similar names. It is based more directly on the previous generation GMA 900 and GMA 950 graphics, and belonging to the same "i915" family with them. It has pixel and vertex shaders which only supports shader model 2.0 features, and the vertex shaders are still only software provided. In addition, hardware video acceleration such as hardware-based iDCT computation, ProcAmp (video stream independent color correction), VC-1 decoding are not implemented in hardware. Of the GMA 3000-equipped chipsets, only Q965 retains dual independent display support. The core speed is rated 400 MHz with 1.6 Gpixel/s fill rate in datasheets, but was listed as 667MHz core in white paper.[5]
Memory controller can now address maximum 256MB memory.
The integrated serial DVO ports has increased top speed to 270Mpixel/s.
GMA 3100
The G31, G33, Q33 and Q35 chipsets use the GMA 3100, which is DX9 capable. The 3D core is very similar to the older GMA 3000, including the lack of hardware accelerated vertex shaders. However, the RAMDAC is reduced to 350MHz, and the DVO ports were reduced to 225Mpixel/s
Infact I'm not even sure if your chipset supports HW T&L, and that's like driving a race car on 3 wheels......and a sick joke on Intel's part.