I get a similar screen when I even make it past the splash... though my whole screen is yellow, and I don't see the 8bit dragon, lol. Also, it makes a hiccupping pig noise and loops it... sometimes (if I'm lucky) I can make it to the options menu after this yellow screen, but the game goes so slowly that it's unplayable...
My system is this:
AMD Athlon 64 processor, 3200+
2.00 GHz, 2 gigs RAM
Nvidia GEForce 8400 GS
Windows XP
Your system is similar to mine, and while the game is playable (albeit slow) in 3A, I've YET to see this opening play out on my PC.
In fact, your system is almost exactly like mine. Only difference - I have a GeForce GTS 250 and a 3800+ CPU