X-Wing Alliance Help!

I'm trying to get XWA to run with 3D Hardware support on my PC. it will not recognize my GPU. Game runs fine with no mods and at 680x480. want to install visual mods, run at 1920x1080, and use mods for high detailed everything. before entering a mission i can set 3D Hardware to "yes," but as soon as a mission begins the game reports, 3D card may not be supported. Help? 

 

CPU: AMD FX8350

RAM: 16GB (2x8GB) G.Skill @ 1866Mhz

GPU: ASUS DCUII OC 7950 

OS: Windows 7 Home Premium 64-bit

XWA Virsion: 2.02

Misc: tried Reimar's patch with no-joy. have tried with mods and without mods.