Problems with 3123 are most likely (barring something I dont know about, which is always possible) NOT the driver.
I would expect that your system has conflicts other than the driver itself, as I never had any issues with 3123 and the behavior you're describing. I regularly ran winex GL games under 3123. I'm under RH 8.0 tho, also used 3123 with 7.3.
Is your XFree86 version recent?
Have you allowed the XConfig program (either XConfigurator, or xf86config rebuild your config file?
I'm far short of linux guru myself, so I probably dont have the answer to your question...