Try this.
1) Make certain you have the v23.11 driver for your video card.
You can get this at
http://www.nvidia.com/view.asp?PAGE=windows9x
2) THEN install directx 7.0.
The geforce video cards optimize based on the directx version. Considering the huge difference between directx 7.0 and 8.0, I suspect that your video card's driver is not working correctly, if it was installed when 8.0 was on your system.
Just be thankful you do not have XP, or youd really be having problems. Im sure your problem is solvable.
Detah