It looks like your install is corrupt. Look at how it's not parsing any of the screen files.
I get probably the same problem:
End of debug.err is:
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Items\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Race\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Stamps\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Units\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\RaceTypes\*.xml
DebugMessage: No files found matching mask data\Animations\Packs\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Effects\*.xml
DebugMessage: No files found matching mask data\Animations\SubPacks\*.xml
DebugMessage: No files found matching mask C:\Users\Laurent\Documents\My Games\Elemental\Quests\*.xml
DebugMessage: No files found matching mask data\Animations\Animations\*.xml
DebugMessage: LoadCoreXMLData finished 3
Debug Message: WARNING: Elemental Sub Pack 'K_Soldier_Recover_Animations' was set to unrecognized animation type: 'Recover'
DebugMessage: LoadCoreXMLData finished 2
Just updated a few minutes ago.
Try going to C:\ProgramData\Stardock\Elemental - War of Magic\screens and delete the files there. That should cause the files to be re-created.
If you continue to get the error after clearing out those files, it may be that the DXAtlasWin.exe file didn't get updated. Did you get prompted to reboot after updating?
I uninstalled the game and reinstalled. Now works fine.
Of course, as I type this, the game crashed but I had exited so it's not really an issue to me - dump here anyway: http://dl.dropbox.com/u/8046784/Elemental0_98-2010-07-29T22-37-20-737.zip
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