game will not load properly

I just bought the game from Steam a few days ago and the game will not load at all. I click to play the game and it attempts to load by flashing between a fullscreeen black box to a black box that goes into the upper right hand corner of my screen and just stays there. The game does not see that it has troubles loading until I force close it. What should I do? and here is the debug file

Debug Message:  Version v2.04 Twilight of the Arnor last updated on: Tue Nov  1 11:59:59 2011 Debug Message:  Checking DX Version. Debug Message:  *********DXDiag info follows.********* System Info Time: 2/19/2013, 16:21:58 DirectX Version: DirectX 11 Machine Name: NIKKO-HP Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7601) Service Pack 1 (7601.win7sp1_gdr.130104-1431) Languages: English (Regional Setting: English) System Manufacturer: Hewlett-Packard System Model: h8-1287c BIOS: Ver: FOR_715.rom vFOR7.15 Processor: Intel(R) Core(TM) i7-3770 CPU @ 3.40GHz (8 CPUs), ~3.4GHz Physical Memory: 12288MB RAM Page File: 2720MB used, 21768MB available Windows Dir: C:\Windows

Display Info Display device 1: Device Name: \\.\DISPLAY1 Card Name: AMD Radeon HD 7450 Manufacturer: Advanced Micro Devices, Inc. Chip Type: ATI display adapter (0x677B) DAC Type: Internal DAC(400MHz) Key Device: Enum\PCI\VEN_1002&DEV_677B&SUBSYS_24961462&REV_00 Display Memory: 2774 MB Current Display Mode: 1920 x 1080 (32 bit) (60Hz) Monitor Name: Generic PnP Monitor Monitor Max Resolution: Driver Name: aticfx64.dll,aticfx64.dll,aticfx64.dll,aticfx32,aticfx32,aticfx32,atiumd64.dll,atidxx64.dll,atidxx6 Driver Version: 8.17.0010.1116 Driver Date: 2/11/2012 14:58:24 DirectX Acceleration Enabled: Yes  

Sound info Sound device 1: Description: AMD HDMI Output (AMD High Definition Audio Device) Default Sound Playback: Yes Default Voice Playback: Yes Hardware ID: HDAUDIO\FUNC_01&VEN_1002&DEV_AA01&SUBSYS_00AA0100&REV_1002 Manufacturer ID: 1 Product ID: 100 Driver Name: AtihdW76.sys Provider: Advanced Micro Devices Driver Version: 7.12.0000.7705 Driver Date: 12/6/2011 04:47:30 Type: WDM Other Drivers: Acceleration Level: 1 Cap Flags: 0 Min/Max Sample Rate: 0, 0   Sound device 1: Description: Digital Output (S/PDIF) (IDT High Definition Audio CODEC) Default Sound Playback: No Default Voice Playback: No Hardware ID: HDAUDIO\FUNC_01&VEN_111D&DEV_7676&SUBSYS_103C2AD5&REV_1001 Manufacturer ID: 1 Product ID: 100 Driver Name: stwrt64.sys Provider: IDT Driver Version: 6.10.6395.0000 Driver Date: 9/26/2012 13:29:46 Type: WDM Other Drivers: Acceleration Level: 1 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 Debug Message:  WM_CLOSE message received. Debug Message:  GameUninitialize start