This is likely to be a SOHO or ip-base router.
Not all routing protocols are implemented in these.
The hardware is capable indeed but you need to use a different feature set of the IOS.
To upgrade the router, you will have to buy the feature set upgrade from Cisco and (if required) you should upgrade Flash and/or DRAM.
You are likely to spend less on a new router than this upgrade might cost you.
Regards,
Leo