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Sadly there can be a lot of these problems when running the game on Intel HD Chipset's :/ If you have less than 256MB in the dedicated memory section you are not even meeting the hardware requirements really :/

Sadly, even if you have a more powerful version, you may still have problems. I can only refer to the tips and tricks that are posted in this forum as well as the Steam one.
 
Last time I tried to use directx 9 in parallel with another version, I had to format my computer.

So, I wouldn't recommend it but, maybe it was just me.

I haven't heard of issues like this :/ I've done it on at least 3 computers without problems.

But if you had problems. Please let me know about their nature. Maybe there is some serious issues with doing this.
 
Sorry for sort of "necrophilia" with this old post, but it's takes first line in google on query "magicka crashes after first level".

Fixed this issue by:
1. Downloading https://downloadcenter.intel.com/download/24695/Intel-HD-Graphics-Driver-for-Windows-7-8-8-1-32bit in .zip .
2. Unzip to any folder.
3. Control panel -> Hardware and Sound -> Device Manager -> Display adapters -> Intel(R) HD Graphics 3000 -> right click -> Update Driver Software -> Browse my computer -> set path to uzipped driver folder -> next -> wait -> reboot .
4. Everything is work!

At least with TOSHIBA Satellite C660-1TE Intel HD Graphics 3000 on Win7x64; game version 1.4.16.0 .

Thanks for repoting this solution!