Here's some parts of my dxdiag that may be pertinent.
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System Information
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Time of this report: 4/25/2011, 01:11:57
Machine name: LINK
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 3 (2600.xpsp_sp3_gdr.100427-1636)
Language: English (Regional Setting: English)
System Manufacturer: INTEL
System Model: DG31PR
BIOS: BIOS Date: 10/22/08 19:07:50 Ver: 08.00.10
Processor: Intel® Core™2 Duo CPU E8500 @ 3.16GHz (2 CPUs)
Memory: 2044MB RAM
Page File: 1781MB used, 3155MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
DxDiag Version: 5.03.2600.5512 32bit Unicode
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Display Devices
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Card name: NVIDIA GeForce 8800 GTS 512
Manufacturer: NVIDIA
Chip type: GeForce 8800 GTS 512
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0600&SUBSYS_071919F1&REV_A2
Display Memory: 512.0 MB
Current Mode: 1920 x 1080 (32 bit) (60Hz)
Monitor: Default Monitor
Monitor Max Res:
Driver Name: nv4_disp.dll
Driver Version: 6.14.0012.6658 (English)
DDI Version: 9 (or higher)
Driver Attributes: Final Retail
Driver Date/Size: 1/7/2011 23:27:00, 6397824 bytes
WHQL Logo'd: Yes
WHQL Date Stamp: n/a
VDD: n/a
Mini VDD: nv4_mini.sys
Mini VDD Date: 1/7/2011 23:27:00, 9888672 bytes
Device Identifier: {D7B71E3E-4540-11CF-4360-152703C2CB35}
Vendor ID: 0x10DE
Device ID: 0x0600
SubSys ID: 0x071919F1
Revision ID: 0x00A2
Revision ID: 0x00A2
Video Accel: ModeMPEG2_C ModeMPEG2_D
Deinterlace Caps: {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
Registry: OK
DDraw Status: Enabled
D3D Status: Enabled
AGP Status: Enabled
DDraw Test Result: Not run
D3D7 Test Result: Not run
D3D8 Test Result: Not run
D3D9 Test Result: Not run
---SECOND MONITOR--- (This is unattached during gameplay, which I assume means it's off.)
Card name: NVIDIA GeForce 8800 GTS 512
Manufacturer: NVIDIA
Chip type: GeForce 8800 GTS 512
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0600&SUBSYS_071919F1&REV_A2
Display Memory: 512.0 MB
Current Mode: 720 x 480 (32 bit) (60Hz)
Monitor: Default Monitor
Monitor Max Res:
Driver Name: nv4_disp.dll
Driver Version: 6.14.0012.6658 (English)
DDI Version: 9 (or higher)
Driver Attributes: Final Retail
Driver Date/Size: 1/7/2011 23:27:00, 6397824 bytes
WHQL Logo'd: Yes
WHQL Date Stamp: n/a
VDD: n/a
Mini VDD: nv4_mini.sys
Mini VDD Date: 1/7/2011 23:27:00, 9888672 bytes
Device Identifier: {D7B71E3E-4540-11CF-4360-152703C2CB35}
Vendor ID: 0x10DE
Device ID: 0x0600
SubSys ID: 0x071919F1
Revision ID: 0x00A2
Revision ID: 0x00A2
Video Accel: ModeMPEG2_C ModeMPEG2_D
Deinterlace Caps: {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalStretch
Registry: OK
DDraw Status: Enabled
D3D Status: Enabled
AGP Status: Enabled
DDraw Test Result: Not run
D3D7 Test Result: Not run
D3D8 Test Result: Not run
D3D9 Test Result: Not run
-------------------------
What I had done on my last attempt to get the game running:
- Turned off/unattached my 2nd Monitor.
- Turned off Thread Optimization under my nVidia settings.
- Made sure Anti-Alias, Vsync, and other suggested things were not on by default.
- CTRL+ALT+DEL and set Penumbra as a high priority task.
Also, just as an FYI, I'm playing this through Steam. Tried a non-Steam version and it does the exact same thing.