I had the same problem with Alter Ego on my win7 64 bit laptop with intel graphics. But got it working.
I have the Shiny Loot download version; not sure if it's different for other versions but this worked for me:
Go to the folder where the game is installed. With my version I had no option of choosing where it would install (I hate that) and it went to C:\Program Files (x86)\Viva Media\Alter Ego US and run AlterEgo.exe from there. This way you get a screen with a 'Setup' choice. Somehow I didn't get that choice if I just started the game from the startmenu.
In the setup screen set Shader Level and Antialiasing level both to 0 (null).
Now that's a handy piece of info
I happened to have this game installed on one of my (long ago retired) work laptops with an Intel IGP. It does get the job done, although I didn't have to lower the AA level - thanks.