Looks like that guide is for using the integrated chip in addition to another vid card
Okay so there is no dedicated GPU. I would start from the bottom and turn down all of your settings, remove your OGL/D3DX9 settings from UT.ini and see what kind of frame rates you get with "timedemo 1." Do you have S3TC textures installed? I don't see why you can't get 720P @ 60 fps.