Nvidia tend to optimise their current drivers for current cards (who can blame them, really). If you want directdraw on older hardware, you'll need to source older drivers.
My old TNT card wouldn't run on anything in the double-digits. I had to go back as far as the 6.39 drivers to make them work! Guru3D has a great download area with all of the old drivers if you need them. Remember that most of the win2k drivers will work on XP.
http://downloads.guru3d.com/download.php?id=10DirectDraw on nvidia uses an automatic bilinear filter on stretch images. This gives the game a blurred appearance, which some people like, and others hate. The D3D blitter was introduced by the MAME devs to give the end users greater control over the final output filter if they so chose. With D3D you can of course use point filtering (ie: just stretch the image with no blurring, leaving a blockier image) or bi/trilinear and anisotropic filtering. Not that it makes squat difference on a flat 2D image at 90 degrees to the viewer past bilinear of course. Plus I understand it is easier with D3D to put overlay filters to do neat things with different simulated grill apatures, scanlines and whatnot. All stuff that doesn't interest me in the slightest (if you want scanlines, buy a real arcade monitor!

).
If D3D works for you at full speed, then I wouldn't bother chasing down older drivers, to be honest. All the same, the info's there if you need it.