Game starts up ok and runs smoothly enough after the obligatory "vsync off" (I have an ATI card, for some reason they have never gotten around to addressing it just doesn't jive with vsync).

I start the first level and my ship is a fuzzy orange blob, as are my hull and energy meters. Level and background look ok, but when I get to the forcefield and it says 'Z: Energy Weapon,' I oblige until my energy hits 0 and nothing happens.

Any ideas?

Windows 7x64
AMD E-350 Processor (2CPUs), 1.6GHz
AMD Radeon HD6310 Graphics

Did you shoot at the thingamajing at the bottom of the forcefield that's blocking your way?

Try turning off "Options"->"Game"->"Distortion".
Other than that... yes, press X and ship should shoot (shoot the turbine thing at the bottom right).
If ship doesen't shoot, you perhaps have a joypad? Make sure to switch to that input possibility using the KEYBOARD.
Also as general tip: Start on easy. The game mechanic is the same but your ship has more hull strength.