I have exactly the same problem.
Here is debug.err
Debug Message: Version v1.0 Digital: Bonus Pack last updated on: Mon Feb 20 19:04:13 2006
Debug Message: *********DXDiag info follows.*********
System Info
Time: 2/21/2006, 21:15:06
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: xxxxxx
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: Finnish)
System Manufacturer: n/a
System Model: n/a
BIOS: Award Medallion BIOS v6.0
Processor: Intel(R) Pentium(R) 4 CPU 2.40GHz
Physical Memory: 1024MB RAM
Page File: 307MB used, 3689MB available
Windows Dir: C:\WIN98
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: RADEON 9600 SERIES
Manufacturer: ATI Technologies Inc.
Chip Type: ATI RADEON 9600 Series AGP (0x4150)
DAC Type: Internal DAC(400MHz)
Key Device: Enum\PCI\VEN_1002&DEV_4150&SUBSYS_2066148C&REV_00
Display Memory: 128.0 MB
Current Display Mode: 1280 x 1024 (16 bit) (100Hz)
Monitor Name: Samsung SyncMaster 900sl Plus(T)/950sl Plus(T)
Monitor Max Resolution: 1920,1440
Driver Name: ati2dvag.dll
Driver Version: 6.14.0010.6599
Driver Date: 1/25/2006 05:52:48
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: SB Live! Wave Device
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1102&DEV_0002&SUBSYS_80271102&REV_06
Manufacturer ID: 1
Product ID: 100
Driver Name: emu10k1m.sys
Provider: Creative
Driver Version: 5.12.0001.3300
Driver Date: 6/12/2002 08:46:06
Type: WDM
Other Drivers:
Acceleration Level: 3
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 multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Game Resolution: 1024 x 768
Debug Message: Running fullscreen.
Debug Message: HAL (hw vp): RADEON 9600 SERIES
Debug Message: D3DPRESENT_INTERVAL_DEFAULT
Debug Message: Refresh rate: 100
Debug Message: Bit Depth: 16 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: A full-color cursor is supported in hardware at high resolution modes.
Debug Message: RGB in format 5:6:5, Masks reported as f800:7e0:1f
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 369e99
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Set mouse.
Debug Message: Set update timer.