I'm not really sure to be honest. I haven't personally seen any reports of Intel integrated cards not working, but one can't be sure.
The main thing that causes Psychonauts to not work with certain graphics card is the card not supporting at least pixel shader 1.0; without it, the game refuses to run. Fortunately, I've done a quick bit of research on your card and it looks like it supports pixel shader 2.0, which is what Psychonauts was designed to run around. So, it should run and look nice to boot.
Of course I've no idea how well
it'll run, and you may have to update your drivers and whatnot to get the best performance.