lelxrv: So this is how I fixed it for Win 7 64.
1) Set 640x480 mode for Cutscene.exe. DX error appears (with any resolution) after the two intros and to fix it you need Dgvoodoo.
2) Download the latest Dgvoodoo. Copy all files from MS/x86 folder in the archive to the installed game folder. That's it. It should work now. There will be Dgvoodoo watermark in the lower right corner during gameplay.
3) (optional) If you want to disable the watermark, just copy dgVoodoo.conf from the downloaded archive to the installed game folder (where you copied Dgvoodoo DLLs). Open with a text editior and change:
dgVoodooWatermark = true
to
dgVoodooWatermark = false
Now CGI cutscenes run with their original aspect ratio of 4:3 and the game doesn't crash with DX error.
Problem with this solution is that dgVoodoo is not just correcting the aspect ratio but also wrapping the directX calls (which is its main purpose since it is a directx wrapper) and therefore it's also slowing down performance a bit.
Btw: dgVoodoo comes with a configuration tool and you can simply start it and change the watermark option to remove it. IN the end it does the same as editing the config file of course.