Sorry it took so long. First a couple of screenshots of the problem:


and the debug file:
Debug Message: Version v2.02 Twilight of the Arnor last updated on: Tue Dec 9 11:44:40 2008
Debug Message: Checking DX Version.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 6/16/2009, 00:48:05
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: RICK-AB4426CCF5
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_rtm.040803-2158)
Languages: English (Regional Setting: English)
System Manufacturer: VIA Technologies, Inc.
System Model: VT8366A-8233
BIOS: Award Modular BIOS v6.00PG
Processor: Unknow CPU Type, MMX, 3DNow, ~2.0GHz
Physical Memory: 1024MB RAM
Page File: 432MB used, 2029MB available
Windows Dir: C:\WINDOWS
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: Radeon X1650 Series
Manufacturer: ATI Technologies Inc.
Chip Type: ATI Radeon Graphics Processor AGP (0x71C7)
DAC Type: Internal DAC(400MHz)
Key Device: Enum\PCI\VEN_1002&DEV_71C7&SUBSYS_0850174B&REV_9E
Display Memory: 512.0 MB
Current Display Mode: 1600 x 1200 (32 bit) (60Hz)
Monitor Name: Plug and Play Monitor
Monitor Max Resolution: 1600,1200
Driver Name: ati2dvag.dll
Driver Version: 6.14.0010.6925
Driver Date: 2/25/2009 17:41:10
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: YAMAHA DS-XG Audio (WDM)
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1073&DEV_000D&SUBSYS_000D1073&REV_03
Manufacturer ID: 1
Product ID: 100
Driver Name: Ds1.sys
Provider: Yamaha Corporation
Driver Version: 5.12.0001.5244
Driver Date: 8/20/2001 05:44:00
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 hardware vertex processing
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Attempting to create D3DDevice at resolution 1600 x 1200, Windowed: 0, Multisample: 4
Debug Message: Game Resolution: 1600 x 1200
Debug Message: Running fullscreen.
Debug Message: HAL (hw vp): Radeon X1650 Series
Debug Message: D3DPRESENT_INTERVAL_DEFAULT
Debug Message: Refresh rate: 60
Debug Message: Bit Depth: 32 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 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: GalCiv2 is activated.
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 369e99
*snip*
Thank you! 