If you've got a built-in graphics card, these may be allocated part of the main memory rather than have a separate area. So might actually have 96Mb (64 + 32), but 1M is allocated solely to graphics. If this is so, that's probably not enough nowadays. See if you can change it up to something like 4M (through BIOS settings, most likely).
I'm sorry I can't be more definite, but I don't know many specifics about Compaq machines. Nor do I wish to. They're real pains to fix.
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