Shaders missing on my WindowsXP & ATI

[Richard]

I use the vdrift-setup-2008-08-05.exe but the game doesn't show the shaders on my machine, so most of the polygons look very dull and I'd be keen to see graphics like the screenshots show.

The stderr.txt reads :

Card supports: drawbuf4 auxbuf0 antialiasing anisotropy16 cubemapping shaders multitexturing16(8) texture_rectangle depth_texture shadow framebuffer_objects
Card does not support:
Status: Using GLEW 1.4.0
Fragment shaders enabled
----- Start Shader Log for simple -----
Fragment shader(s) linked, vertex shader(s) linked.
Validation successful.

----- End Shader Log for simple -----
Loaded shader package simple
----- Start Shader Log for full -----
Vertex and Fragment shader(s) were not successfully compiled before glLinkProgram() was called. Link failed.

----- End Shader Log for full -----
Shader compilation failure: full
Loaded shader package full
OpenGL error after shader loading is complete

[Sound etc]

It's Windows XP pro on a DELL Vostro Slim Case with ATI Radeon X1300 pro 256 MB, recent drivers.
On the same machine other OpenGL applications run fine with shaders, for example Sauerbraten (Cube II). Also Blender runs fine (not sure if it uses shaders, though). I think the OpenGL drivers work fine.

What could cause this problem?
Thanks for any help and hints.

All the best and thanks for this great game!

Richard