Yeah, 1998. Welcome to 2006. We have jet cars now!
Actually UT2004 supports software rendering through its Pixomatic renderer. Give it a try and behold the wonder of software rendering on a modern PC. Seriously, it's good for software rendering and basically matches something from 1998, but it's certainly no substitute for a hardware 3D accelerator.
As for the comments regarding the limitations of integrated video, some integrated video is better than others. You can achieve a playable framerate and visuals on some of Intel's integrated video on many older games. Intel even has versions like the 950 and newer which support shader model 2.0. I wouldn't mind seeing more games which will run on integrated video including a version of UT2007 which is at least network compatible with the standard one for cutting edge PC's, e.g. UT2007 with the UT200X engine.