Older builds of FS2_Open would report that it found version 1.0 when you had 2.0+, but version 1.1 is the software GL that comes with Windows. Either the video card drivers aren't installed properly, or the video card isn't supported. The other option is the color depth issue, where you are running your desktop in 16-bit color and trying to run the game in 32-bit color. If that happens then it will end up using the software GL version rather than what is provided for your hardware. Make sure that the game isn't trying to use a color depth higher than your desktop is set to.