[Windows XP] Need help identifying the issue

I was playing Hitman, when the GPU crashed. ok it happened occasionally before. Only this time for some reason I couldn't get to the restore button and I would reboot afterwards. So I crashed the hitman window, restored and rebooted the whole thing. I got what is on pictures. messed up fonts.

Is this the GPU failing? is the issue another hardware? or is it a software issue?

I've never seen anything like this. on boot the fonts are messed up. and I am not sure the windows take it over yet at that point.

after about 10 or more resets and VPU recoveries I get to the normal desktop, however it then appears to be using some kind of software accel. mode to display. playing movies give out various errors that some directx is missing etc. and then plays the movie. flash video is slow. so I guess this is CPU doing GPU's work.

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