There's probably some confusion around what Intel calls "Highly optimized SW pipeline built into DirectX*", but basically it means that it will work. The actual graphics chip will not be performing those duties, your CPU will... But ultimately, you shouldn't notice the difference because the graphics chip is so stinking slow to begin with

Anyway, you should be fine. I've played T&L-required games on old crappy Intel graphics hardware before and it's worked as best as you'd expect for an integrated graphics solution (ie -- turn down the resolution and details and you will be fine)