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I use NVIDIA 6600GT graphics..

the new NVIDIA GUI has overrides for Dungeon Siege.exe in the program settings..
- just call up the GUI from the systray
- click on 3D Settings
- then "Manage 3D settings"

Under the tab marked program settings..
- in section1
- scroll down to find Dungeon Siege.exe
- in section 2, you'll now see all of the various overrides that NVIDIA has included specifically for DS1.. they are matched to your card's capabilities
- experiment with the settings for the best result and then save
- next time you play, these settings will automatically be in place..

(DS2 is also there, in various forms.. it's very easy to use!)