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Thanks for the detailed reply.

I've tried the following:

-getting directx 9 from the link you suggested
-updating the graphics driver
-adding the line to the steam launch options

The graphcs card is "Intel(R) HD Graphics Family"

I'm still having the same problem as before. When I launch I get horrible graphics/texture problems.

On the other hand, the steam version of DS+LoA is running beautifully on my older laptop and I've got TCP/IP games up with a friend. Now I just need to find more players ^ ^