If you own the Steam version, you have the broken “Steam Edition” (version 3.0) that removed several audio files and broke texture streaming. You need to downgrade to version 1.0.
If the error persists after those three steps, move on to DGVoodoo2 or the Compatibility Mode settings. gta 3 cannot convert textures your video card hot
"Fatal Error: Cannot convert textures. Your video card is not supported." If you own the Steam version, you have
Here is a helpful guide to understand why this happens and how to fix it. If you own the Steam version