I do have the latest version of DirectX9.0(whatever) from the Microsoft Website installed on my computer as some games I have will not run on DX10; including this one. Here is the print out of my dxdiag file.
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System Information
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Time of this report: 6/22/2007, 19:32:48
Machine name:

-PC
Operating System: Windows Vista™ Home Premium (6.0, Build 6000) (6000.vista_rtm.061101-2205)
Language: English (Regional Setting: English)
System Manufacturer: HP-Pavilion
System Model: RT641AA-ABA a1720n
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: Intel(R) Core(TM)2 CPU 6300 @ 1.86GHz (2 CPUs), ~1.9GHz
Memory: 3070MB RAM
Page File: 947MB used, 5377MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 10
DX Setup Parameters: Not found
DxDiag Version: 6.00.6000.16386 32bit Unicode
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DxDiag Notes
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Display Tab 1: No problems found.
Sound Tab 1: The file ctaud2k.sys is not digitally signed, which means that it has not been tested by Microsoft's Windows Hardware Quality Labs (WHQL). You may be able to get a WHQL logo'd driver from the hardware manufacturer.
Sound Tab 2: The file ctaud2k.sys is not digitally signed, which means that it has not been tested by Microsoft's Windows Hardware Quality Labs (WHQL). You may be able to get a WHQL logo'd driver from the hardware manufacturer.
Input Tab: No problems found.
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DirectX Debug Levels
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Direct3D: 0/4 (retail)
DirectDraw: 0/4 (retail)
DirectInput: 0/5 (retail)
DirectMusic: 0/5 (retail)
DirectPlay: 0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow: 0/6 (retail)
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Display Devices
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Card name: NVIDIA GeForce 7600 GS
Manufacturer: NVIDIA
Chip type: GeForce 7600 GS
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0392&SUBSYS_033E196E&REV_A1
Display Memory: 744 MB
Dedicated Memory: 248 MB
Shared Memory: 495 MB
Current Mode: 1280 x 1024 (32 bit) (60Hz)
Monitor: Generic Non-PnP Monitor
Driver Name: nvd3dum.dll,nvwgf2um.dll
Driver Version: 7.15.0011.5818 (English)
DDI Version: 9Ex
Driver Attributes: Final Retail
Driver Date/Size: 4/12/2007 17:07:00, 4669440 bytes
WHQL Logo'd: Yes
WHQL Date Stamp:
Device Identifier: {D7B71E3E-40D2-11CF-646C-352301C2CA35}
Vendor ID: 0x10DE
Device ID: 0x0392
SubSys ID: 0x033E196E
Revision ID: 0x00A1
Revision ID: 0x00A1
EDIT by Blair: I have copied the directX information that posted after this here onto a debug file as it was quite long

We are looking into this.