Thanks for the report. This sort of problem is usually due to graphics driver issues.

Please try these steps:

1. Double check and make sure you have DirectX installed.
Go to this site to install it: http://support.microsoft.com/kb/179113
Follow the instructions to install DirectX.

2. Update your graphics card drivers. The the website of your computer manufacturer should help you get the latest drivers.

3. Test that your video card works. In Windows open a "Run As.." dialog by holding the Windows Key + "R". When the dialog opens type "dxdiag" (without quotes) and press OK. Switch to the "Display" tab and verify that "DirectDraw Acceleration", "Direct3D Acceleration" and "AGP Texture Acceleration" are enabled.

4. If you have an NVIDIA graphics card, try the following: Open Nvidia Control Panel and change the setting "Aspect ratio" to "No scaling" on the Adjust desktop size and position page (with "Perform scaling on display")

5. If you have an Intel graphics card, try the following: Open Intel Control panel and change the 'Scaling' option from "Maintain Display Scaling" to "Maintain Aspect Ratio".

If you are still having trouble after updating your software, please let me know and we can diagnose further.