I am on Windows 7 and when I try to start the game a popup shows the message D3DERR_DRIVERINTERNALERROR

I have this exact same problem on Blood Omen 2 - Funnily enough... Soul Reaver 2 works flawlessly for me.

I'm getting the exact same issue in Blood Omen 2, actually. It's rendered the game totally unplayable and it's kind of distressing. Anyone have any ideas on this?

I too have exactly the same problem with Blood Omen 2, Windows 7 64-bit.

Compatibility modes don't help, nor does running as administrator or disabling desktop effects.

Edit: Just found a solution to this particular problem. Open up a command line window, go to the directory in which your game is installed and type either

bo2.exe -setup (for Blood Omen 2)

or

sr2.exe -setup (for Soul Reaver 2)

Configure your display as necessary, then start the game.