Do you have SP2 installed? There were several fixes for direct x in SP2.
Using the DirectX Diagnostic Tool to diagnose problems
If you are experiencing problems when running Microsoft DirectX applications, the DirectX Diagnostic Tool can help you find the source of the trouble. Here are some of the things you should be looking for:
Incorrect versions of DirectX components.
In the Notes section of the DirectX Files page, look for warnings about beta and debug files. Beta files are early test versions and should not be installed with commercial programs.
Debug versions, which are used in program development, should not be installed with the final product. Debug versions of the components can cause programs to run much more slowly than they would with the retail versions.
Lack of hardware acceleration. Some programs run very slowly or not at all unless Microsoft DirectDraw or Direct3D hardware acceleration is available.
On the Display page, look under DirectX Features to see whether DirectDraw, Direct3D, or AGP Texture acceleration is marked "Not Available." If so, you might consider upgrading your hardware. Or if you are using a product in the Windows Server 2003 family, you may need to enable graphics acceleration. You can do this by opening Display in Control Panel, selecting the Settings tab, and then clicking Advanced. Select the Troubleshoot tab, and then move the Hardware Acceleration slider to Full.
Device not connected. If a joystick or other input device fails to respond, it may not be properly set up. Make sure the device is accounted for on the Input page of the DirectX Diagnostic Tool. If not, add the device through Control Panel.
Unsigned drivers. Microsoft has not tested unsigned drivers for full compatibility with the latest version of DirectX. It is recommended that you use drivers that are digitally signed by Microsoft Windows Hardware Quality Labs (WHQL).
-from Windows XP "Help"
Edited by Enthusiast, 31 July 2006 - 03:38 AM.