Hi all,
I don't know if You managed to solve this issue, but here "my" solution.
I had the same issue, with the HAL popup when starting the game and the blank space in the video driver selection. I opened a ticket with GOG support, in the meanwhile roamed the net to finf something.
I managed to pinpoint the problem to directX related. It is quite complex, with win 7, 64 bit, directX for 32 bit and brand and drivers of video card, so it's an elusive bug, to track and to solve.
I tried the usual, running as admin, re-installing the directX runtime, disabling antivirus, etc, to no avail.
As a workaround, I find that nGlide worked for me, with the added bonus to set the resolution in 4:3 (as original) without stretching.
Then came the GOG support answer (good old GOG ;-) ).
Most suggestions I already tried, but a link to a Microsoft page did it:
http://answers.microsoft.com/en-us/windows/forum/windows_7-gaming/direct3d-acceleration-is-not-available-in-windows/4c345e6e-dc68-e011-8dfc-68b599b31bf5 You need to edit the windows registry, so be careful.
There is more than a solution listed, some people had to set the "SoftwareOnly" key to 0, mine was the "EmulationOnly" key. They are in different place in the registry, it's explained in the link.
Hope this helps, credit goes to the GOG support team.