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I have found the same thing. I am running:
AMD Athlon XP 2000+
128Mb RAM
Windows XP
on an ASROCK Motherboard that features on-board graphics. I currently allocate 8Mb to the Video Card
I find that it can be very slow, and have problems with the mouse whilst the menu is up. Is there anyone who knows how to fix this sort of problem?

Yep. There are two companies called NVidia and ATI that can probably help you out...

If you have onboard graphics, chances are the video card that is on the motherboard provides little or no 3D Acceleration, meaning your CPU does all the work. 3D Accelerator cards are usually many times faster - probably 100x faster now.

So there's actually not much you can do apart from buying a separate video card for your PC. Onboard graphics are designed for basic windows stuff - just word processing really. I'd be very surprised if any modern games ran any faster for you.

The other problem is onboard graphics don't usually have proper OpenGL drivers, although sometimes they have directx ones. There is a driver to convert from directx->opengl, but from my experience i honestly don't think it will help you.

- Gordon