A couple of things to check - can you go to Start / Control Panel / Display / Settings tab, and see what the "Color quality" setting is at? MoI needs this to be at 32-bit color.
Also can you please try doing Start / Run and type in "dxdiag.exe". This will run the DirectX Diagnostic Tool which will check to see if DirectX is functioning properly on your machine. Go to the Display tab and push the "Test Direct3D" button and see if the tests function properly.
- Michael
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