Have you installed direct X ? Or the proper one ? The 32bit directx is the 9C from June 2010. Download it from anywhere, filehippo.com, etc... When done it will unzip to where you tell it, go to where you unzipped it and run setup.
When done do the following - Start-Run-type 'dxdiag' and enter - it will scan for a minute or two then done. I suggest go to the Video tab and run the tests make sure full acceleration is on, same for Audio 1. You can save the info for later troubleshooting.