X1600 graphics and Pixel Shader support

I have a first gen 17" MacBook Pro (2.16GHz, 2GB RAM, ATI Radeon X1600 graphics) with a graphics card that's supposed to support Pixel Shader 3.0 as documented here. However, when I run this software, the features that create textures and images onto 3D surfaces don't work. My understanding is that they should work with the X1600. Can anyone shed some light on this apparent incompatibility?