D3D initialization failed DUNGEON SIEGE 2

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Hello,
Either the demo or full game I get this error. I've tried the latest drivers, from Cat, to Omega, to older ones and nothing. Have tried the usual: clean install, no overclocked settings, and other boards. My direct X is the 9.0c also. Nothing! I do notice that the ds2videoconfig.exe doesn't seem to work. I've a Radeon 9600se which is supposed to be supported. Even tried running with different levels of hardware acceleration and still nothing. I think this is a driver issue. Help!

AMD 64 2800+ 512 mb RAM
WinXP w/ sp2
DFI LanParty MB with latest BIOS
I don't use onboard graphics/sound

Feedback appreciated!
 
It could be a compatability issue with 64bit, visit the game manufacturers site to see if they have a patch.
 
Got it!

Tried everything, even microsoft tech said I needed to upgrade my video card, lol! What finally worked was renaming all old directX .dll to .old from inside the dxdiag! Had to search for them and was time consuming, but well wirth the wait!
 
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