OK guys, I got it to work! I created a shortcut to Elemental on my desktop and under "Properties" I added /w at the end of the Target line (after the last quote). This opens the game in a window. Good luck!
You, sir, are a gentleman and a scholar, a shining paragon of mankind.
In other words, I was getting the same problem (running XP) until modifying the shortcut to start in windowed mode.
Edit: and I broke it again! Don't try to increase the resolution, or when you restart the game it'll launch but be stuck "minimized," sound plays but will not display, must exit via task manager.