Minecraft Graphics Suddenly turned Bad

I've been playing Minecraft for a few years on the same computer and suddenly the graphics have gone bad. I thought it was the 1.5 update and my crappy graphics card wasn't supported anymore but then I tried voltz (1.4.7) and it is exactly the same. Here is an example:

My graphics card, like I said, is very old (Intel 82945g). But it has been running perfectly for ages. I've attempted installing a new texture pack (sphax 32x32) but this didn't help. It's not really the blocks that are the problem, just the items.

The texture pack shown is just the default Minecraft.

Buying a cheap $50(AU) graphics card completely solved the problem. The graphics card that I was using was an integrated graphics card (Intel 82945g) and despite me upgrading basically everything else in the computer, I hadn't upgraded the graphics card, because it worked for the games I was playing.

This is the result, and I can now play in far render with no lag! If you're graphics card is old, I suggest buying a new one. It literally makes your PC so much more enjoyable.