This error means the graphics card driver on your system is not up to date. Even when Windows states this is up to date, Altiverb 7 can generate this error and you will find there is a newer driver available (and this will solve this error).
Please try to update your graphics card driver.
Find out what graphics card you have in your system (right click on your desktop, choose change screen resolution, hit advanced settings, that would show you the manufacturer’s name and the model).
Then please go to the manufacturer’s website, hit support/drivers and find the latest driver for your graphics card and download and install this.
Restart your computer.
The problem should be gone now.