Of course I understand you may not have much of a choice in terms of what hardware you buy, especially in a country like India. But if you have a card like that, you can't expect to be able to run each and every game on it, unfortunate as it is 
I did some research for you: the theoretical upper limit is 32MB, so you seem okay there (but there's no guarantee that you'll ever get that much, a lot depends on system configuration).
You may want to check with the DirectX tool dxdiag.exe how much memory your system indicates is available for memory. This number represents the current amount, not necessarily the maximum, but some games rely on this number to determine if enough memory is present to run. If this number is very low, RoN may simply not run because it doesn't realize that the system can allocate more memory if required.
Basically you can't. It depends entirely on how what the driver and the OS can make available.
Among other places here: http://downloadfinder.intel.com/scri...port_Intel.asp
Search for "810e", you'll find graphics drivers as the first search result (latest version is 6.7).
You'll have to ask that to Microsoft or BHG. And if it isn't, if they plan on supporting it in the future.
However, like Q Cubed said, I wouldn't be surprised if few or no onboard cards are supported though, so you're probably best off buying a seperate video card. Make sure it has at least 32MB of memory and isn't listed in the readme or anywhere else as a problematic card. Apart from that, any card will probably do (like Q Cubed said).
Again a question for BHG/MS, but assume that it does (and the 815 family as well). The differences are minimal.
Differs per motherboard, but probably under the Plug & Play Settings (which are often under the Advanced menu). The option is usually called something like 'Primary Graphics Adapter' and you can often choose between 'Onboard', 'AGP' and 'PCI', depending on your hardware. Of course, you should only change this after you built in a new card, where the new setting depends on what kind of card it is. However, DON'T MESS WITH YOUR BIOS unless you know what you're doing. You could seriously screw up your PC if you mess up. If possibly, let someone with experience build in a new card and change your BIOS settings.
Hope that helps...

What is the max onboard video memory that can be set for the onboard graphics
You may want to check with the DirectX tool dxdiag.exe how much memory your system indicates is available for memory. This number represents the current amount, not necessarily the maximum, but some games rely on this number to determine if enough memory is present to run. If this number is very low, RoN may simply not run because it doesn't realize that the system can allocate more memory if required.
How can you change your onboard memory settings ?
ANd where do you download the latest drivers for the 801e ?
Search for "810e", you'll find graphics drivers as the first search result (latest version is 6.7).
Is RON compatible with onboard graphics (assuming I have 32 MB video memory onboard ) ?
However, like Q Cubed said, I wouldn't be surprised if few or no onboard cards are supported though, so you're probably best off buying a seperate video card. Make sure it has at least 32MB of memory and isn't listed in the readme or anywhere else as a problematic card. Apart from that, any card will probably do (like Q Cubed said).
The readme mentions only 810 . Does that include the entire family (810e & 810e2) ?
Additionally , how can I change the onboard graphics in BIOS ?
Hope that helps...
there are lots of reasons. my most recent experience with it was at work with a compaq whose power supply had died. we had to shell out extra, because your generic power supply wouldn't fit. 
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