A few things:
- Your SMBus shows no driver associated with it. Do you have any devices in the Device Manager with yellow triangles next to them? Hopefully SMBus management is one of them!
- DXDiag lists your card as: VisionTek Radeon HD 2600 XT AGP, but you say it is an: ATI 3650 512mb ram AGP, so it sounds more like someone flashed the card BIOS than just a driver tweak to me. BTW, this could be your problem with Divinity 2.
- Again, i will state that re-installing DirectX and/or drivers does not fix the 'Not enough video memory' error. You are correct there. It is most likely a hardware issue with the driver/software for your AGP card.