taltamir: it doesn't make it compatible with modern cards, it just makes it not use the card at all... it uses the CPU to render a crappier looking version of the graphics.
Actually there is no noticable difference in graphics as game is 2D, not 3D. Most likely the 3D acceleration is used only on spell effects and special effects like in baldurs gate does. Reason why using it causes problems is that modern graphic cards and drivers no longer support pre DirectX9c functions properly. Some of the problems may also be due to bad programming and due to use of hacks/workaround and quirks on hardware and directX of that time.