Demo error

[bman654]

Hmm in both files I have this for devicetype just before your error:

1.520 0 [Render] DeviceType=1; vs=FFFE0200
10.197 0 [Render] HWVP device created

So that makes it sound like the problem is with the video card or its installation.
Try running DXDIAG (Start -> Run -> DXDIAG ) and click on the Display tab and see if there is anything blank or Disabled or Not Found or Error or something.
You might also try re-installing your video card driver (latest version of course). What kind of vid card do youhave? And do you have a dual-core machine? If so, you might try setting the processor affinity to a single cpu for the game.