I had the same issue, also on Windows 7. I had to change to an Aero theme to be able to get past the VHS in the middle of the screen. Only issue I have now is the mouse is way too sensitive to be able to play effectively.
Honestly, it was a lucky a guess. I had tried everything else, and figured "why the hell not". Helps that I work in tech support, so I've gotten pretty good at thinking of off-the-wall ideas to try while troubleshooting.
