missing combat graphics

[purringcat]

KBAP is installed on my desktop pc and runs fine except there are few graphic animations shown for spells during combat. I've seen pictures of what the graphics should look like but don't know how to fix my problem. All I get are the gold/orange circles of the active army member.

Some of my dxdiag:
Time of this report: 2/13/2010, 07:18:25
Machine name: MELINDA-VM
Operating System: Windows 7 Ultimate 64-bit (6.1, Build 7600) (7600.win7_rtm.090713-1255)
Language: English (Regional Setting: English)
System Manufacturer: OEM
System Model: OEM
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: Intel(R) Core(TM) i7 CPU 950 @ 3.07GHz (8 CPUs), ~3.1GHz
Memory: 6144MB RAM
Available OS Memory: 6136MB RAM
Page File: 1957MB used, 10311MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7600.16385 64bit Unicode
Display Tab 1: No problems found.
Sound Tab 1: No problems found.
Sound Tab 2: No problems found.
Input Tab: No problems found.
Card name: NVIDIA GeForce GTX 295
Manufacturer: NVIDIA
Chip type: GeForce GTX 295
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_05EB&SUBSYS_12953842&REV_A1
Display Memory: 3688 MB
Dedicated Memory: 877 MB
Shared Memory: 2811 MB
Current Mode: 1920 x 1080 (32 bit) (59Hz)
Monitor Name: Generic PnP Monitor
Monitor Model: SyncMaster
Monitor Id: SAM04D4
Native Mode: 1920 x 1080(p) (59.934Hz)
Output Type: DVI
Driver Name: nvd3dumx.dll,nvwgf2umx.dll,nvwgf2umx.dll,nvd3dum,n vwgf2um,nvwgf2um
Driver File Version: 8.17.0011.9634 (English)
Driver Version: 8.17.11.9634
DDI Version: 10
Driver Model: WDDM 1.1
Driver Attributes: Final Retail
Driver Date/Size: 1/22/2010 01:50:59, 11862120 bytes
WHQL Logo'd: n/a
WHQL Date Stamp: n/a
Device Identifier: {D7B71E3E-46AB-11CF-507E-9E321FC2C535}
Vendor ID: 0x10DE
Device ID: 0x05EB
SubSys ID: 0x12953842
Revision ID: 0x00A1
Driver Strong Name: oem37.inf:NVIDIA_SetA_Devices.NTamd64.6.1:Section0 03:8.17.11.9634:pci\ven_10de&dev_05eb
Rank Of Driver: 80E62001

I've tried all different game graphic settings but nothing works. Any help would be appreciated.