The system is using the generic video driver. Please install video driver provided by the hardware manufacturer.
I think he should rather try installing the video card driver. After formatting a computer, and installing XP or Vista, most people forget to install video card drivers, since Vista and XP come with a generic driver that supports 1024x768 resolutions with 16-32 bit (so it looks like the driver is already installed). However, these generic drivers don't work with games, as they do not support 3D graphics, and RO is a game that needs Direct3D.
By the way, XP already comes with DirectX 9, and Vista with DirectX 10, so unless someone is using Windows 98 SE (which isn't supported anymore anyway due to the new client, I believe), or 2000, DirectX shouldn't really be an issue.