You are on XP ? Because on Vista/Seven, the last end-user drivers are 7.14.10.1005, dated 21/05/2009.
http://downloadmirror.intel.com/16943/eng/relnotes_vista_gfx.htm
Yes, I am on XP. IEGD does not support WDDM. I have the strong feeling that the 1005 driver is quite similar to the 1009 XP (e.g. there is no OpenGL, Shader Model 3.0 is supported).