GLSL shader not working!

[GrayChild]

When I try to run the demo, I get the following lines in the log file:

Initializing Graphics Module
--------------------------------------------------------
Setting video mode: 1024 x 768 - 32 bpp
Init Glew...OK
Setting up OpenGL
Vendor: ATI Technologies Inc.
Renderer: RADEON X550 x86/MMX/3DNow!/SSE2
Version: 2.0.5885 WinXP Release
Max texture image units: 16
Max texture coord units: 8
Max user clip planes: 6
Two sided stencil: 1
Vertex Buffer Object: 1
Anisotropic filtering: 1
Max Anisotropic degree: 16
Multisampling: 1
Texture compression: 1
Texture compression S3TC: 1
Auto generate MipMaps: 1
Render to texture: 1
Max draw buffers: 4
Max color render targets: 4
Packed depth-stencil: 0
Texture float: 0
GLSL Version: 1.10
ShaderModel 2: 1
ShaderModel 3: 1
ShaderModel 4: 0
OGL ATIFragmentShader: 1
ATTENTION: System does not support const arrays in glsl!
ERROR: Failed to compile GLSL shader 'C:/Program Files/Amnesia - The Dark Descent Demo/redist/core/shaders/deferred_base_vtx.glsl'!

I'm running the game on Radeon X550 GFX (which I understand does not support Pixel Shader 3.0 and higher) with latest drivers. I've also installed the latest version of OpenAL and even tried to run the game on the lowest settings. Does Amnesia require the latest shader model?