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I share your frustration, usually I can pick the problem almost straight away!

In dxdiag,txt I see
Current Mode: 1280 x 800 (32 bit) (75Hz)
whereas setup.log says
RefreshRate=60
Resolution=1280x800
Can you try setting your desktop to 60hz refresh rate please?

And, can you make a new dxdiag.txt and post just the Display Devices section please.

Assuming the above don't help, can you tell me in detail about your machine and monitor please? Being XP we don't get much detail from the files.
 
Just plugged in the VGA cable and the game started up fine. Thank you again for your help, can't tell you enough how much I appreciate it.
OK brilliant, thanks for the feedback. I'll pass on your hardware details to the developers.
 
i cant believe this.......i had just given up hope. i was hovering over the "uninstall crusader kings 2" button, when i suddenly thought about something. so i changed my screens resolution to something lower and WAALLAAHH! IT WORKS!.........-_- two weeks of frustration and complaining just for a screen res change *sigh* i guess 1280x800 isn't supported by the game then lol. thnx for the help anyways man =)
 
Actually it is supported, my guess is that it's the refresh rate, as per my post #21 above. The resolution change probably changed the refresh rate too.