Thanks for providing your hardware specs and posting a debug log.
An ATI Radeon X1600 is not powerful enough to run Diaspora. You might get the game working by turning down the graphics options extremely, but there may be graphical glitches (which cannot be fixed) and/or a very low framerate that could make the game unplayable or at least unenjoyable. That said, you can try making the following changes in the list of checkboxes in the launcher's advanced settings tab:
Under "Graphics" uncheck "Enable soft particles", "Enable FXAA anti-aliasing", and "Enable post processing" and possibly check "Disable normal maps" and "Disable environment maps".
Then under "Troubleshoot", check "Disable GLSL (shader) support".