I think you have to have a video card that supports Direct3D (or OpenGL I think) for this to work. Not sure though, do you have a video card installed or is it just a generic driver?
my driver is ATI 3d Rage IIC AGP (A21) also i got directx 9.0c
but seems like i know what the problem its the comp OS kinda PIRATED >_<
not my comp not my fault =P Arigato Kohakusan >_<V
Check the device manager and see if the darn thing didnt got disabeled(it sometimes happens, dont ask me why). Try taking off the full screen mode. Check the monitor is intalled on the video card and not the generic MB one (Ohh so many have fail on this one, bealive me XD ).
This is why Im tired of M$ Window$, to bad I still have to deal with it thanks to RO >.<
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Do you have any options in those 2 dropdown list or are they both empty?
Anyhow new drivers can't hurt, restart setup.exe after and you should have some choices in those dropdowns, keep us informed, we'll try to help if it still doesn't work.