This device cannot find enough free resources that it can use (code 12). Resolved!

So I had this customer earlier who I spent almost 3 hours on the phone trying to resolve this issue. The guy had an old Dimension XPS and decided to upgrade his Video card from an ATI AGP 128MB to an NVIDIA 9400GT PCI 1GB! So the issue started with the display lagging whenever he scrolls up or down and when moving individual windows. We checked device manager and there was a yellow mark on NVIDIA 9400GT.

Here are the things we tried:

1. Uninstalled and re-installed video driver.
2. We went to BIOS setup (F2 on startup), Integrated Devices> Video Controller, then we changed AGP to AUTO.
3. We even reseated the video card and CMOS coin battery.

All these didn't make a difference. It's true that ATI Control panel from the old GPU won't uninstall so this may also be causing the problem. Upon research we stumbled upon a forum http://discussions.virtualdr.com/archive/index.php/t-231257.html

posted by MPTECH

I finally contacted MSI and here's what they told me:
Ensure you have latest Bios update for your board (If you have not done so already). Please try with clearing the cmos setting on Jbat1 jumper/SW1 Switch or removing the battery on the mb out for 1 minute and put it back in with power off. Turn system back on load optimized default setting in bios cmos, save exit. If you didn’t start out with a clean/fresh load of Window please do so for best result.

We ended up doing so and it worked. Thanks MPTECH!