Problem - DirectX or NVIDIA?

[CaptBones]

After three years of running without any problems, here's something I've never seen before...

I just let GeForce Experience download and install the newest driver (version 344.11) for my dual GTX460. When I start SH3 (using SH3 CDR), the screen resolution changes to 1024x768 and I get this pop-up warning:

"SilentHunter3: sh3.exe - Entry Point Not Found. The procedure entry point Direct3DCreate9Ex could not be located in the dynamic link library d3d9.dll"

If I click on "OK" many times (can't get it to close in just one or two clicks), meaning fifteen or twenty times, the box closes and SH3 starts "normally".

Here's the list of activated MODs I'm using:
GWX 3 Wilhemshafen,St Naz,Schluese and xtra ships V7
GWX_LifeBoats&Debris_v4
GWX_Ships_Buoyance&Draught_mod
GWX_Waterstream+Exhaust Combi V2.3
GWX_Waterstream+Exhaust Combi V2.3- Single Exhaust for TypeII
GWX - 16km Atmosphere
GWX - Alternative Flotillas
GWX - Enhanced Damage Effects
GWX - No Medals on Crew
GWX - Open Hatch Mod
Aces' Combined SH3.SDL Files v2
Aces' Crew On Deck - Stand alone mod v1 GWX Version
Das Boot Officers and RelBrgs
OLC's Modified Searchlight Beams for GWX3
Rapt0r's Das Boot Interior
Rapt0r's Instruments V3.5 [Without Red Circle]
Rapt0r's Uniforms
SH-5 Water for SH-3 20 Km V84
Sound Fixes_TSP3.2
TeifeMkI(German)
TheDarkWraith_Ship_Plane_Fire_Damage_v1_4_SH3
TorpedoTubesFireFinal vGW
Merchant_Fleet_Mod_3.2
MFM3.2 displacement correction mod
Patch V16B1 (JSGME)

The OS is Win 7 Home Premium; I've been running SH3 in compatibility mode for XPSP2, so I also have the SH3_XPSP2_ResFix_for_1.4b cfg and dll files installed in the main SH3 folder, which is installed in a separate directory folder...C:\SubSims.

Does anyone have any ideas about what's going on, what happened to cause this problem? I'm tempted to roll back the NVIDIA driver to begin with, but could use a SUBSIM expert opinion or two before doing anything.