[Crash Bug]Elemental War of Magic Beta 2 (hangs on start screen)

1. Game hangs with the Elemental War of Magic beta 2 start screen, no menu items shown, cursor changes to feather, but clicking anywhere on the screen just beeps or does nothing.
2. Can't exit Elemental War of Magic start screen, Alt-tab/esc key/Cntl-Alt-Delete doesn't work, requires powering off PC and restarting.
3. No debug.err file generated

Install Procedure: used the following to install game
1. Download game, Impulse downloaded and installed.
2. Registered Game with Serial Number
3. Clicked on Run from impulse while logged-in and connected to internet

Install Issue?

1st Install
- When installing Microsoft C++ 2005 SP1 Redistributables (I get a gray pop-up box Micronsoft Visual C++ 2008 Redistributables Maintenance Mode with two options (repair or uninstall 2008 version of Microsoft Redistributables? chose repair) , did not reboot after the install of Microsoft components.

2nd Install

-When installing Microsoft C++ 2005 SP1 Redistributables (I get a gray pop-up box Micronsoft Visual C++ 2008 Redistributables Maintenance Mode with two options (repair or uninstall 2008 version of Microsoft Redistributables? chose repair), did reboot after the install of Microsoft components. 

Tried the following:

1. Rebooted PC, logged-in through Impluse, click run for Elemental War of Magic. (same problem as above)
2. Disabled Zone Alarm firewall
3. Disabled Microsoft Security Essentials Anti-virus
4. Re-download and installed game.
5. Tried launching the game from C:\Program Files\Stardock Games\Elemental\Elemental.exe

6. Re-verified Install through Impulse and Reactivated game

7. Downloaded and installed Microsoft C++ 2005 SP1 Redistributables (x86 version) from Microsoft web site.

System Spec

P4 3GHz
2 GB Ram, virtual memory 2.3 GB
100 GB of free disk space
Win XP 32bit SP 3
ATI 4670 AGP video with 1 GB RAM (10.5 version of Catalyst Drivers)
DX 9.0c

DXDiag http://pastebin.com/cnSEFysX


Note: Impulse - shows the wrong download size (0.99 GB vs. 1.06 GB) for Elemental War of Magic beta 2 both under Downloads and My Games when downloading?

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Problem Fixed: Finally got the game working after first changing the Prefs.ini file (set  Fullscreen to Windowed mode 0/1), then after a dozen changes/restarts to the graphic settings. Looks like something in the initial graphic settings doesn't like ATI video cards and/or the 10.5 drivers.