Grand Theft Auto 3 XP Fix

"We have found a possible problem with Windows XP that manifests itself as graphical problems both in the game menu and also during game play. We have traced this problem to be a Windows XP problem. Technically this problem is solved by the use of a newer version of d3d8.dll than is shipped on CD with Windows XP. (The version on the Windows XP CD that has problems is 5.1.26000.0 – versions tested without error include 5.1.2600.15 and 5.1.2600.29)
Currently the only way we know to update this dll file is to install the Windows XP Patch: "The Computer Cannot Enter Standby or Hibernate if a Direct3D-Based Screen Saver Is Running (Q306676)" downloadable from here.
This update may in the future be available as part of an official Windows XP Service Pack, a Windows XP Compatibility Update, or possibly a DirectX 8.1 update."