DirectX3D Accelerator issues

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Direct3D 7 test results: Failure at step 8 (Creating 3D Device): HRESULT = 0x8007000e (Out of memory)

I have gotten this message after upgradeing my computer. I upgraded my Processor, Memory, Monitor, and a floopy/memory stick reader. Before this everything worked fine. I dont understnad the memory part of since i went from 1.25 Gigs of memory to 4Gigs. Processor was a 2.22 single core. Is now a 2.6 Dual Core. Monitor should not be effecting anything. Same thing with the floopy because i just repleced it with and extreamly old floppy. So if you need any other information let me know. Any help will be appericated.
 
Yes. It is the Asus A8N-E and it supports a max of 4 gigs. From what i heard is that XP only uses 2gigs total. The chipset allocates 1 gig. XP allocates the other.
 
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