Yup it is definitly possible to get it working. I got 3d working on my E-machines M5310 which has the IGP320. It's all a matter of how comfortable you are with Linux. I'm currently writing up a little how to for the E-machines, I used the following website as a reference:
http://vayne.fdns.net/presario.html
If you haven't compiled a kernel before I suggest you start by learning how to do that. Compiling isn't all that hard once you understand the procedures but the learning curve can be a little steep.
Some of the things you need when compiling the kernel are AGP support and DRM support. Use a 2.6.+ kernel and patch it with the mm patches. Then configure the kernel so that AGP and DRM are enabled for the Radeon. I compiled the AGP directly into the kernel and left the DRM as a module. You must at least keep the DRM as a module because you will be wanting it later. Will also need to compile in all of the other hardware you might you have. If you leave out something you could end up with a system that won't boot. However if you install the kernel properly this isn't a problem because Linux can boot from the old kernel.
Once you have AGP support in the kernel and a DRM module created go to the website link I gave you and start reading and rereading. You need to download a patched version of XFree86 that supports the IGP series. Currently 4.3 does not support it, neither will 4.4 because the patch wasn't checked in on time. So you have to get a prepacthed version or patch it yourself.
He has a prepacked system for download that has everything included and patched, you just have to modify one line in one of the config files and then "make World" and then "make install" then you have to make a new radeon module which is also detailed on that website. Once the module is compiled you just make sure it is loaded on bootup. Mandrake already setup XFree86 to work with a "radeon" module so you shouldn't have to do much to your xf86config file.
I'm being a little vauge in some of this stuff because the details could fill a whole book. You are welcome to IM me and I'll try to help you out more but I'm no genious myself. I just spent about 30 hours one weekend working on it and finally got it to work.