Well, Yes you should first update DirectX. This is an issue related to Win VISTA, so please update DirectX 10.
By the way I'm attaching the dxgi.dll file here. Kindly download and place it under the 'C:\windows\system32' location for example, just in case your update doesn't work properly.
But in any case Update ALL your system drivers, as well as DirectX.
Cheers.
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