Michael,
I just installed MoI feb-9-2007 beta and no problems with the install. I get the above referenced error and get the following from the error log:
.\Direct3D.cpp 149: GetDeviceCaps failed, Adapter = 0 hr = -2005530518
.\Direct3D.cpp 580: CreateDevice failed hr = -2005530518

I have an nVIDIA Quadro FX with 512 MB of memory working on dual monitors with 1920 by 1200 on one (laptop) and 1680 by 1050 on the other (flat screen). The system and monitor are both Dell.

Any suggestions?