Game fails when it attempts to go to Fullscreen during start

The gist is once I start the game it attempts to go to fullscreen and hangs in a black window. I then typically have to kill it in task manager or reset.

I have updated to V1.3, updated my Video Drivers, Updated my FX-60 Dual Core Drivers. My next step is to reinstall.

The only oddity my system has is it is set at a refresh rate of 61Hz, I cannot modify from that. I have had to modify .ini on other programs to allow them to accept the initial video setting. However, I do not know the location of the initial config file. Any help would be appreciated.

Debug Message: Version v1.3 beta 2a last updated on: Tue Aug 8 16:18:51 2006
Debug Message: *********DXDiag info follows.*********
System Info
Time: 8/25/2006, 00:08:20
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: BEAST-MKV
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: CLEVO
System Model: D900K
BIOS: KBC/EC Firmware Revision: 1.00.02S6
Processor: AMD Athlon(tm) 64 FX-60 Dual Core Processor , MMX, 3DNow (2 CPUs), ~2.6GHz
Physical Memory: 2046MB RAM
Page File: 196MB used, 3742MB available
Windows Dir: I:\WINDOWS


Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: NVIDIA GeForce Go 7800 GTX
Manufacturer: NVIDIA
Chip Type: GeForce Go 7800 GTX
DAC Type: Integrated RAMDAC
Key Device: Enum\PCI\VEN_10DE&DEV_0099&SUBSYS_09011558&REV_A1
Display Memory: 256.0 MB
Current Display Mode: 1920 x 1200 (32 bit) (61Hz)
Monitor Name: Default Monitor
Monitor Max Resolution:
Driver Name: nv4_disp.dll
Driver Version: 6.14.0010.8340
Driver Date: 1/5/2006 00:28:00
DirectX Acceleration Enabled: Yes



Sound info
Sound device 1:
Description: Realtek AC97 Audio
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1106&DEV_3059&SUBSYS_09011558&REV_60
Manufacturer ID: 1
Product ID: 100
Driver Name: ALCXWDM.SYS
Provider: Realtek Semiconductor Corp.
Driver Version: 5.10.0000.5930
Driver Date: 9/22/2005 12:34:18
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0

Sound device 1:
Description: Bluetooth AV/HS Audio
Default Sound Playback: No
Default Voice Playback: No
Hardware ID: {F12D3CF8-B11D-457e-8641-BE2AF2D6D204}\BLUELETAUDIO
Manufacturer ID: 65535
Product ID: 65535
Driver Name: blueletaudio.sys
Provider: IVT Corporation
Driver Version: 5.01.2600.1106
Driver Date: 5/31/2005 15:40:20
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0

Sound device 1:
Description: Linksys CIT200
Default Sound Playback: No
Default Voice Playback: No
Hardware ID: USB\Vid_13b1&Pid_001d&Rev_0140&MI_00
Manufacturer ID: 65535
Product ID: 65535
Driver Name: usbaudio.sys
Provider: Microsoft
Driver Version: 5.01.2600.2180
Driver Date: 8/3/2004 23:07:56
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0



Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Going Fullscreen
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Could not create the render device using default format. Switching to 16bit
Debug Message: Using multilsample setting: D3DMULTISAMPLE_NONE
Debug Message: Could not create the render device.
Debug Message: InitializeDirect3D Failed.
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: WM_CLOSE message received.
Debug Message: GameUninitialize start