I just installed WoZ also, and had the same message.
the good news is i anticipated that and can tell you what the problem is.
on the back of the WoZ box, it states under the recommendations for Video Card, "video cards with Pixel Shader version 1.1 or better are required."
the message "failed to initialize rendering engine" basically means that the gome won't work because your graphics card does not support Pixel Shader 1.1 or later. unfortunately this means you will have to upgrade the video card to play. but now you know!
-the Friendly Nerd