One of the problems is with your graphics card. The Radeon HD 4250 is a low end card, nowhere near powerful enough to handle a game like Sims 2 at high resolutions. AA and AF are pretty demanding on graphics cards. I would recommend disabling them or reducing them to the lowest setting to improve performance.
As for your resolution problem, you can try the following solutionsolutions:
Find the file:
C:/Program Files/EA GAMES/The Sims 2/TSData/Res/Config/Graphics Rules.sgr
… and make a copy of it under a different name as a backup (something like Graphics Rules.sgr.bak)
Now edit the original file and find the section:
“option ScreenModeResolution”
You will see settings for Low, Medium, and High. Copy the medium settings and paste them over the low settings to allow the game to start at 1024×768 resolution or better.
Save and exit and then start the game to see if it works
The original source of the resolution problem solution is linked HERESOLUTION 1.