First av all sorry for my english .....
I had the same problem with DirectX9o.c and the RADEON 9200 SE on a win98 SE.
The grafic card is supported by the game as we know, but when I started the sims 2 this window pop up:
Failed to find any Direct X 9.0c compatible grapics adapters in this system! Please make sure you have Direct X 9.0c compatible graphics adapter and have installed the latest drivers provided by the manufacturer. The application will now terminate.
When I started the diagnostic for the DirectX i could see the error that the Direct3D was not activated.
I did a lot of things fore I got the solution but to make this short .... I did update the Via KT600 chip with the last version "4 in 1 driver" and now the game works just fine!!!!
Hope this will help some of you