virtualbox.org

I am trying to play Star Wars Rebellion (a game from the 1990s) on Oracle VirtualBox on Windows 7 where the VirtualBox is running XP SP3. At certain stages in the game, I get, "one or more of the caps bits passed to the callback are incorrect." The game then crashes out.

What does this error mean? It seems to be associated with the display. Is there something I can do to fix it?

Have you installed the guest additions with the WDDM drivers and enable 3D acceleration?

Yes

Then you've done all you could for Virtualbox. Don't forget that Virtualbox doesn't try to make games work better. If they do, you're lucky, else that's it.