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Rename the AVI folder located where you installed the game.
Rename it to AVI_back
 
Okay let's try all my standard things.
1) Rename the AVI folder to AVI_back
2) Set the color depth to 16BIT
3) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.

If none of that helps then:
Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
Your display driver is WAY out of date. Update it and you should be okay.
 
Driver Version: 6.13.0010.6270 (English)
DDI Version: 8
Driver Attributes: Beta Retail
Driver Date/Size: 9/27/2002 16:34:52, 49376 bytes

No way a two year old driver is the latest, the driver even says it is only a beta.

What you need to do is go to the website of the people that make your Video card.
Then look for drivers or downloads or support.
They should have a page where you can download a new driver.

A two year old driver will not be compatible with DX9 since that standard was not even around two years ago.
 
Thanks for the link!
 
Woa!

You are going to mess up your system!

You already have a later version of directX installed.
Attempting to install an earlier version can mess up your system big time.

I don't understand why you think you have the latest drivers installed when the ones you are using are TWO years old!

You have Version 13.001 installed and the link is for version 16.055.
 
When you installed the new Operating system you need to reinstall drivers.
 
If everything is now working to your satisafaction, I would not mess with them.

Otherwise you can
1) edit the registry entry. Only do this if you are confident in what you are doing.
2) Reinstall.
3) Install default generic drivers, then install the correct drivers over top of them.