There is no need to reinstall windows.
This smells as directx or card driver problem.

First make sure you install the latest Catalyst driver from AMD/ATI site:
http://support.amd.com/us/gpudownload/Pages/index.aspx

If that doesn't do the trick, browse the game disc (I know you like boxed versions) for directx redistributable installation and install that. You'll spot somewhere a folder named directx or a file called dxredist.exe or something like that.
Or install any game from Steam as their installations always update directx.
Or install with indirect setup from Microsoft:
http://www.microsoft.com/en-us/downl…ils.aspx?id=35