GameBanshee Forums

Try running DXDIAG directly and disabling direct draw manually. Once again, remember to turn it back on when you're done.

I found the answer to the graphics issues using a geforce 8 series card here: IE games and NVidia Series 8 video cards - Spellhold Studios

Basically, what you need to do is: RightClick on desktop -> Properties -> Settings Tab -> Advanced Button -> Troubleshoot -> Lower Hardware Acceleration ...