Well just some last thoughts (at least they are easy/harmless :P)
You could try installing the latest DX runtime update.
http://www.microsoft.com/downloads/d...displaylang=en
November is really the latest but I've got Aug running as it came with Bioshock and SHIII works under that.
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In Nvidia control panel 'Change Flat Panel Scaling' make sure your monitor make is correct and you have it set to 'use my displays built in scaling'
And your native res is set to 1600x1200 of course.
BTW I'm running NV 163.67 so your version should be ok.
T.