I actually ran into this same issue. Sadly, I haven't yet found a fix. But, it's also been awhile since I last looked for one. Let me do a little research now and see if I can't find anything helpful!
It's a great game, and I'd love to get it working (for both of us)!
Update: I found some more info, and it looks like it is fairly specifc to Intel mobile graphics cards, especially those with Optimus technology
. I'm still having the same issue, but I took a peak at your DxDiag and I have a couple suggestions to try in the meantime.
It looks like your drivers were last updated on November 28th, 2010. (Keep in mind that drivers may be updated as frequently as once a month.)
Intel's website (the manufacturer of your video card), has a web tool that will automatically update your video drivers if there is an update available.
Please visit: http://downloadcenter.intel.com.
Click on "Run Intel Driver Update Utility". This is found in the blue box at the top of the webpage. Follow the instructions to update your video drivers.
Once you've updated the drivers, I'd recommend rebooting your computer then reinstalling the game. You also may want to update/reinstall DirectX by visiting http://www.microsoft...ails.aspx?id=35
It seems that this has fixed it for a few folks online, but doesn't seem to be a guaranteed fix...
I'll keep looking though! (Like I said, I want to play this again as well!)