How can you have UI issues if you can't download the data file?
UI issues sounds like there is something in the Prefs.ini video settings your video card doesn't like.
Did you try running in windows mode? The load screen can sometimes hide error messages behind it.
On XP
C:\Documents and Settings\Admin\My Documents\My Games\Elemental
Set Fullscreen=0 in the Prefs.ini file.
Make sure your not downloading anything else, it seems to be a timing issue, if Elemental.exe can't get the data file in a limited amount of time it just hangs.