I think it has something to do with the d3d9 hires mod, it has stuffed something up.

I just disabled all mods, went to uninstall/change/repair but it's still the same,

maybe I'll move the sh4 folder in docments & settings & give it a try ... standby .... no that didn't work either, this kinda sucks big time, I don't think my card has died as it works with the hires mod ok. It looks like a total reinstall!!