Can't see what's up. But I guess something is just funky and can't say what.
Might run just fine with uninstall-reinstall, or might not.
It should work! I have a similar setup and no problems.
AMD Phenom X4, Vista (64bit though), AMD 7770 GPU, used to have ATI 4870 and that also ran.
Warleader3: Thats the nwnplayer.ini ...
Mine setup is so:
[Game Options]
Single Player ItemLevelRestrictions=0
Single Player Enforce Legal Characters=0
Client CPU Affinity=0
Memory Level=1
Memory Access=1
TooltipDelay uSec=100000
Enable FloatyTextFeedback=1
Hide SecondStoryTiles=0
ClientEntireChatWindowLogging=0
LogMyEmoteUsage=0
In-game Text Swear Filter=0
Visible Cloaks=1
Heartbeat Logging=0
Difficulty Level=2
Log Model Errors=0
Death Logging=0
MouseoverFeedback=1
TextBubbleMode=1
[Server Options]
One Party Only=1
MaxCharLevel=40
Game Port=5121
Max Players=6
Server Name=Server
GameSpy Enabled=1
Game Type=0
Disable AutoSave=0
CD Banned Behavior=0
Suppress Base Servervault=0
Disallow Shouting=0
ShowDMJoinedMessage=1
Saving Throw Automatic Failure On 1=1
BackupSavedChars=0
Validate Spells=1
Examine CR On Creatures=1
Examine Effects On Creatures=1
Max Hit Points=0
Hide Hit Points Gained=0
Restore Spell Uses On Login=0
Always Reset Encounter Spawns=0
Master Server Authentication Required For Player Login=0
Account validation required during Master Server down times=0
2DA Cache Size=10
Reload Module When Empty=0
PVP Setting=1
PauseAndPlay=0
Auto Save Interval=0
AllowLocalChars=1
Game Region=0
ServerDownTimer=180
Enforce Legal Characters=1
ItemLevelRestrictions=0
[Control Options]
Zoom Speed=3.000000
CameraTurnSpeed=1.000000
Enable ScreenEdgeCameraTurn=1
CameraMode=1
EnableDialogZoom=1
[Profile]
ShowMessageOfTheDay=1
ShowPregenChars=1
JournalPage=0
Client Port=5120
ShowDDMessage=0
[Trap Colors]
FriendlyColor=0,255,0
HostileColor=255,0,0
[Script Options]
Enable Profiling=0
Enable Logging=0
[Banned Ips]
0=
[Banned Players]
0=
[Banned CD Keys]
0=
--------------
Edit. Actually I'm pretty sure the DX9 is the culprit.
You can't install DX9 on top of DX10, but the runtime installer should still work.