Cannot create 3d device.... please help

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Went to work today, I have never had an issue with runing blitz on my work pc until now.

All of a sudden I cant use anything using directx 7 3d features.. I ran DXDiag and it tests 7,8, and 9. The 7 gives an out of memory error...

Very odd..

Runing an intel 865g gfx.. never had an issue before..

Any ideas?