Your graphics card / driver is struggling to cope with 3D. 3D needs more memory to run on. If giving it more RAM doesn't work than you will just need an upgrade on your graphic card or driver.
TyNiC, "Use Graphics Processor" option enables certain features; such as all of 3D. So by unticking that option is not a solution; he won't be able to use a lot of features including 3D.
Try this: Edit, Preferences, Performance. Allow Photoshop to use more memory (I wouldn't go over 50% as it would slow the hell out of your machine when you're doing a lot on photoshop).
Then: Edit, Preferences, 3D. Increase available VRAM if you can.