failed to allocate a graphics resource.simcity will now exit.[1008]

Whenever I try to open the game, I get this error. I went on systemrequirementslab, and it said I didn't have enough video memory, but I can run some games where it says that. Would I be able to change this by increasing and allocating ram? 

Thanks in advance.

dxdiag: 

System Information
------------------
Time of this report: 3/26/2014, 18:52:24
Machine name: EZIAMA-PC
Operating System: Windows Vista™ Home Premium (6.0, Build 6002) Service Pack 2 (6002.vistasp2_gdr.130707-1535)
Language: English (Regional Setting: English)
System Manufacturer: TOSHIBA
System Model: Satellite A300
BIOS: PhoenixBIOS 4.0 Release 6.1
Processor: Intel(R) Core(TM)2 Duo CPU T5550 @ 1.83GHz (2 CPUs), ~1.8GHz
Memory: 2038MB RAM
Page File: 2708MB used, 1608MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
DxDiag Version: 7.00.6002.18107 32bit Unicode

Card name: Mobile Intel(R) 965 Express Chipset Family
Manufacturer: Intel Corporation
Chip type: Mobile Intel(R) 965 Express Chipset Family
DAC type: Internal
Device Key: Enum\PCI\VEN_8086&DEV_2A02&SUBSYS_FF501179&REV_03
Display Memory: 358 MB
Dedicated Memory: 0 MB
Shared Memory: 358 MB
Current Mode: 1280 x 800 (32 bit) (60Hz)
Monitor: Generic PnP Monitor
Driver Name: igdumd32.dll
Driver Version: 7.14.0010.1329 (English)
DDI Version: 9Ex
BGRA Supported: Yes
Driver Attributes: Final Retail
Driver Date/Size: 9/13/2007 13:23:46, 2498560 bytes
WHQL Logo'd: Yes