It sounds like 3d control can not find a compatible video mode. Restart your computer and run 3d control center again. Is is still red? If so, delete the files PE\data\Setting.HAL and PE\data\hwconfig.ini and try again. If still red, try installing DX9, Win7 comes with DX10. If you are using compatibility mode, use Win98 not XP.
I checked the sorce code and anything more then 2 gigabytes of video ram will cause a negitive value. I'll see if I can rewrite the module.
Megatherion: Well, what do you know, it finally worked! Software mode. Why won't it work with Direct 3d support I wonder, oh well, at least I can play it now. Now my problem is that it won't play at a resolution of 1920 x 1080, get an application error the instruction at 023445bf referenced memory at 02fb2000 the memory could not be written (sometimes the memory could not be read from). Any idea what max resolution I can play at?