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First thing to try is renaming your AVI folder to AVI_Back.
 
Based on the error message, I would say your system does not like something with the sound card. Possibly asn interaction between it and DirectX9. Maybe it is not fully compliant with 9.0.

Can you run a Direct X diagnostic for us please. You may also want to try it with the music disabled from the HOI settings program and see if that makes a difference.
 
What about the Direct X diagnostic?
 
Sounds like maybe the onboard sound cards are not full DirectX compliant?
 
I am wondering if there is a motherboard update you guys could download? Do you have the latest drivers for it?
 
Yes I remember this from another thread where a user had problems thanks for the update and the knowledge that it fixes this problem as well.
 
The only thing I can tell you is to revert to a previous version of DirectX say 8.1 or 8.2.
I would say your onboard sound card is not DirectX 9.0 compatible. :(

You could try contacting the manufactor and see if the are working on a fix. Let us know thanks.
 
Originally posted by Bobarossa
My system is also Win98SE. The WDM driver is listed on the Cmedia site as being for XP, 2000, ME and W98SE. If it won't run on your system, then I would suspect the DirectX9 also. Maybe you don't have all the patches for Win98?

Bobarossa

Interesting, Tarantin, did you actually try them?
 
Since it is a problem with the drivers I would suggest you contact the manufactor of your onboard sound card or motherboard.

I know that is lame to redirect you but honestly I think that is the best plan for now.