I have the same "unable to initiate display" message. I have the latest video driver, directx 9, latest patch, and 512mb ram. Normally I use 1024x786 32bit colors. But for this game I've tuned it down to 16bit and even 256 colors. It still gave me the same message even with the "w" parameter. Another thing I have tried is changing the DeviceType= number in .ini file. no effect. I don't see why this game can't run on my system since even doom3 runs.
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