Hello,
I think your graphics specs of your hardware seem rather insufficient and it may never work. As an immediate solution try to at least remove the OpenGL plugin (Program Files/Adobe/After Effects CS3/Support Files/Plug-ins/Extensions). Also make sure to trash the prefs before attempting this (Documents and Settings/Philip/Application Data/Adobe/After Effects/8.0). Application Data is invisible by default, so adjust your folder view settings accordingly.