Some suggestions that you may/may not have tried:
1) Run as Administrator (Right click, Run as Admin)
2) Install DirectX 9 from microsoft.com (apparently Win 7 left out a few bits!)
3) Adjust your resolution in main.cfg (Documents/SH3)
4) Copy across from an Install on previous version of windows (Apparently the installation on Win 7 is messed up! N.B. My install of Win 7 was on a machine that had previously been Vista 32 bit so this one is the situation I'm in albeit inadvertently)
Hope these help.
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