I suspect that the AvP2 bug is exactly the same one experienced in No One Lives Forever (which uses the same underlying game engine) when underwater - a bug I've sadly reported multiple times. I believe it's to do with the use of shaders in the now-defunct Lithtech engine, and as you say, it was never a problem with older Intel graphics chips.
Support for pre-DirectX 9 games seems to be particularly ropey nowadays, sadly. And I'm not sure that Intel have much incentive to fix or interest in fixing it (certainly, nothing has improved over the year and a half I've been installing driver updates on this computer). Usually someone comes along and states the importance of contacting the game developer for a patch, but these games are all games either made by defunct developers or with licences that have now expired, so the chances of further game updates are essentially nil.
I find it extremely frustrating that I'm no longer able to play these games on computers with integrated graphics chips, since these issues seem to affect any graphics chip from the HD4000 onwards. These should be games that Intel HD graphics have no problems with at all.
Thank you for your feedback on this matter, I will forward this information to our engineering department.
Take a look at playable game list for your graphics controller:
Please check for updates about it on same forum thread.
I made a short video demonstrating the issue with Lithtech-based games.
I tried to cover all graphics chipsets from GMA950 to HD4600, though there's likely one or two missing.
Nevertheless, the issue was introduced with HD3000 and is still not fixed.
Thanks goes to RLacey for providing footage from No One Lives Forever