If the card is compatible with directX 8 it will also be compatible with any minor update to the 8 series such as 8.1 -- so that's not the problem. You seem to have the wrong device driver for the card judging by the error message, and it needs to be compatible with your version of Windows (which you have not disclosed). Here are some links to the relevant page on the ATI website:
ATI Rage Driver for Windows XP :
https://support.ati.com/ics/support/...ge&folderID=27
(the Rage 128/128 Pro Driver should work with your Ultra card)
ATI Rage Driver for Windows 98 :
https://support.ati.com/ics/support/...ge&folderID=27
ATI Rage Driver for Windows ME :
https://support.ati.com/ics/support/...ge&folderID=27
The Rage 128 Ultra is not listed in any of the links, but the 'Rage 128/128 Pro' driver should be fine.