One of the selling points of the whizzy graphics on Vista was that they offloaded all the graphics drawing to your graphics card, so yeah, I guess if you don't have a graphics card and you only have minimum memory then it might not do so well when all the effects are turned on.
You can't really complain about that to be honest. It was never meant to run on that. Just turn Aero off.
7 is supposed to do better in these circumstances as it was designed to work well on netbooks etc, which didn't really exist as a market segment when Vista was written.