I have a 9800GTX+ and I can't play XWA properly without playing in software rendering mode, which is unacceptable. I can't play a 640x480 game on a 1920x1200 screen. I suffer from the classic "no models, only backdrops, except in the targeting computer" problem that I can't seem to fix no matter how many times I fiddle with compatibility or nVidia options.
I think new drivers simply break XWA, and I'm not going to revert all the way back to 169 drivers just to play XWA. This is very frustrating.