Okay, scrap that. I have the same problem, here is the debug files take on it:
Debug Message: Version v1.80e Dark Avatar last updated on: Thu Nov 8 10:48:23 2007
Debug Message: Checking DX Version.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 12/3/2007, 03:27:31
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: ---------------
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.070227-2254)
Languages: English (Regional Setting: English)
System Manufacturer: 939M2
System Model: 939Dual-SATA2
BIOS: Default System BIOS
Processor: AMD Athlon(tm) 64 X2 Dual Core Processor 4200+, MMX, 3DNow (2 CPUs), ~2.2GHz
Physical Memory: 1024MB RAM
Page File: 524MB used, 2935MB available
Windows Dir: E:\WINDOWS
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: Radeon X1950 Pro
Manufacturer: ATI Technologies Inc.
Chip Type: ATI Radeon Graphics Processor (0x7280)
DAC Type: Internal DAC(400MHz)
Key Device: Enum\PCI\VEN_1002&DEV_7280&SUBSYS_207217AF&REV_9A
Display Memory: 512.0 MB
Current Display Mode: 1440 x 900 (32 bit) (60Hz)
Monitor Name: Plug and Play Monitor
Monitor Max Resolution: 1600,1200
Driver Name: ati2dvag.dll
Driver Version: 6.14.0010.6734
Driver Date: 11/2/2007 04:09:00
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: Sound Blaster Live! 24-bit
Default Sound Playback
Default Voice Playback
Hardware ID: PCI\VEN_1102&DEV_0007&SUBSYS_10061102&REV_00
Manufacturer ID: 1
Product ID: 100
Driver Name: P17.sys
Provider: CREATIVE
Driver Version: 5.12.0001.0512
Driver Date: 7/7/2005 15:14:30
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0
Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Going Fullscreen
Debug Message: Preparing to change display settings.
Debug Message: Using hardware vertex processing
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Attempting to create D3DDevice at resolution 1024 x 768, Windowed: 0, Multisample: 4
Debug Message: Could not create the render device using default format. Switching to 16bit
Debug Message: Using hardware vertex processing
Debug Message: Using multilsample setting: D3DMULTISAMPLE_NONE
Debug Message: Attempting to create D3DDevice at resolution 1024 x 768, Windowed: 0, Multisample: 0
Debug Message: Could not create the render device.
Debug Message: InitializeDirect3D Failed.
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: GalCiv2 is activated.
Debug Message: WM_CLOSE message received.
Debug Message: GameUninitialize start