From what I've been reading alot of people with 256MB video cards dont have the option of playing Empires with the highest(Ultra) settings even though their computers maybe able to handle it. Heres an easy workaround.
All you have to do is change one line in your Empire: Total War preferences file.
For XP its here: C:\Documents and Settings\YOURNAME\Application Data\The Creative Assembly\Napoleon\scripts.
For Vista its here: C:\Users\Username\AppData\Roaming\The Creative Assembly\Napoleon\scripts
Open up the preferences file and find the line:
gfx_video_memory 0; # gfx_video_memory , Override available video memory (bytes) #
Change the value "0" to one that matches your video card:
So for 256 enter 264241152
Or for 512 enter 536870912
Now save (by going to file and click save) and your done. Start up empires and you should be able to choose Ultra. Go here for help on choosing what settings to use:
https://imperator.rpg-board.net/etw-f19/tuning-your-graphics-settings-t1280.htm If you dont get Ultra settings now then your video card cant support shader 3 and its time for a new one.
Feel free to add any questions or comments.
EDIT: Application Data maybe a hidden folder on Vista. If so you may have to do this to see your hidden folders:
Go to Start, then computer
Go to Tools
Choose "Folder Options"
Go to the View tab
Find the tab for "Hidden Files and Folders"
Choose "Show Hidden Files and Folders"
Click Apply and Ok
That will show all your hidden folders.