I had the exact same problem. Here's my debug.err. Good hunting to the debuggers.
Debug Message: Version v1.0 Digital: Bonus Pack last updated on: Mon Feb 20 19:04:13 2006
Debug Message: Could not find a TGN Serial No.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 2/21/2006, 19:18:25
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: SNARKY
Operating System: Windows XP Home Edition (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: HP Pavilion 061
System Model: PS420AA-ABA A732N
BIOS: BIOS Date: 08/27/04 11:09:23 Ver: 08.00.09
Processor: Intel(R) Pentium(R) 4 CPU 3.40GHz (2 CPUs)
Physical Memory: 1536MB RAM
Page File: 289MB used, 1867MB available
Windows Dir: C:\WINDOWS
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: RADEON 9800 PRO
Manufacturer: ATI Technologies Inc.
Chip Type: RADEON 9800 PRO AGP (0x4E48)
DAC Type: Internal DAC(400MHz)
Key Device: Enum\PCI\VEN_1002&DEV_4E48&SUBSYS_00021002&REV_00
Display Memory: 128.0 MB
Current Display Mode: 1280 x 1024 (32 bit) (60Hz)
Monitor Name: Plug and Play Monitor
Monitor Max Resolution: 1600,1200
Driver Name: ati2dvag.dll
Driver Version: 6.14.0010.6599
Driver Date: 1/24/2006 19:52:48
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: SB Audigy Audio [B800]
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1102&DEV_0004&SUBSYS_00511102&REV_03
Manufacturer ID: 1
Product ID: 100
Driver Name: ctaud2k.sys
Provider: Creative
Driver Version: 5.12.0001.0441
Driver Date: 10/8/2003 10:06:04
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0
Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Going Fullscreen
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Game Resolution: 1024 x 768
Debug Message: Running fullscreen.
Debug Message: HAL (hw vp): RADEON 9800 PRO
Debug Message: D3DPRESENT_INTERVAL_DEFAULT
Debug Message: Refresh rate: 60
Debug Message: Bit Depth: 32 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: A full-color cursor is supported in hardware at high resolution modes.
Debug Message: RGB in format 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 caaa7a10
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Set mouse.
Debug Message: Set update timer.
Debug Message: Clear data definitions.
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\*.StarSystems
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for PirateShip. ***
*DEBUG ERROR: ***Unable to find required tech ImpossibleTech for Starbase. ***
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\ships\*.shipclass
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\ships\*.shipcfg
Debug Message: Reading Star Names
Debug Message: Reading Star Names... Done
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\Dread Lords Campaign\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\Logos\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\Metaverse\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\Mods\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\Portraits\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\ships\*.sav
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\temp\*.sav
Debug Message: Killing threads.
Debug Message: Kiling civs.
Debug Message: Killing ships.
Debug Message: Killing rallypoints.
Debug Message: Killing misc objects.
Debug Message: Killing stars.
Debug Message: Killing anomalies.
Debug Message: Killing space resources.
Debug Message: Killing colonies and planets.
Debug Message: killing scenario.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Loading Custom Map
Debug Message: Loading Data Defs
Debug Message: Clear data definitions.
Debug Message: Loading TechDefs
Debug Message: Max num techs: 248
Debug Message: Loading ImprovementDB
Debug Message: Loading Component Defs
Debug Message: Loading ShipTypes
Debug Message: Loading ShipConfigs
Debug Message: No files found matching mask C:\Documents and Settings\HP_Owner\My Documents\My Games\GalCiv2\ships\*.shipcfg
Debug Message: Loading AnomalyTypes
Debug Message: Loading RandomEvents
Debug Message: Loading UPIssues
Debug Message: Loading ResourceTypes
Debug Message: Loading InvasionTactics
Debug Message: Loading SBmodules
Debug Message: Loading PoliticalParties
Debug Message: Loading Planet Types
Debug Message: Loading Star Types
Debug Message: Loading Game
Debug Message: Loading Galaxy
Debug Message: Loading FOW Map
Debug Message: Loading ZOC Map
Debug Message: Loading Planets
Debug Message: Loading Stars
Debug Message: Loading Anomalies
Debug Message: Loading Resources
Debug Message: Loading Civs
Debug Message: Loading Colonies
Debug Message: Loading RallyPoints
Debug Message: Loading Ships
Debug Message: Loading Fleets
Debug Message: Loading Influence
Debug Message: Loading Tech Order
Debug Message: Loading ENDGALAXYDATA
Debug Message: Updating ZOC.
Debug Message: UIBeginGame called with g_ulLocalPlayerID = 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: Destroying ship Colony Ship M0-1 27. Orbiting: 0
Debug Message: Destroying ship Colony Ship M0-1 21. Orbiting: 0
Debug Message: Updating ZOC.
Debug Message: Yearly Status Dialog
Debug Message: Yearly Status Dialog 0a
Debug Message: Year: 2225. Paulos traded Beam Weapon Theory to the Altarian Republic in exchange for Stellar Cartography
Debug Message: ForeignRelationsWnd: Cannot find OBJID Foreign_Relations_Destabilize_Slider
Debug Message: ForeignRelationsWnd: Cannot find OBJID Foreign_Relations_Destabilize_Scale
Debug Message: ForeignRelationsWnd: Cannot find OBJID Foreign_Relations_Destabilize_Title
Debug Message: ForeignRelationsWnd: Cannot find OBJID Foreign_Relations_Destabilize_Value
Debug Message: ForeignStats: Cannot find OBJID Foreign_Stats_Race_Button_11
Debug Message: ForeignStats: Cannot find OBJID Foreign_Stats_Race_Image_11
Debug Message: ForeignReportWnd: Cannot find OBJID Foreign_Report_Race_Button_11
Debug Message: ForeignReportWnd: Cannot find OBJID Foreign_Report_Race_Image_11
*DEBUG ERROR: ***ForeignTreatiesWnd: Unknown edit field Foreign_Treaties_Lines_Window type: DrawingWindow ***
Debug Message: ForeignUnitedPlanetsWnd: Cannot find OBJID Foreign_UP_Race_Button_11
Debug Message: ForeignUnitedPlanetsWnd: Cannot find OBJID Foreign_UP_Race_Image_11
*DEBUG ERROR: ***MinorRaceWnd: Unknown edit field Foreign_Minor_List_Entry type: CustomListEntry ***
Debug Message: Destroying ship Colony Ship M0-9 54. Orbiting: 0
Debug Message: Updating ZOC.
Debug Message: Altarian Republic (2): Researching: Xeno Economics
Debug Message: Arcean Empire (3): Researching: Ion Drive
Debug Message: Jessuins (14): Researching: Missile Weapon Theory
Debug Message: Paulos (15): Researching: New Propulsion Techniques
Debug Message: Arcean Empire (3): Researching: Mass Driver Theory
Debug Message: Yor Collective (5): Researching: Impulse Drive
Debug Message: Destroying ship Colony Ship M0-1 31. Orbiting: 0
Debug Message: Updating ZOC.
Debug Message: Paulos (15): Researching: Universal Translator
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: StarportWnd: Cannot find OBJID StarPort_Planet_Logo_Image
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: setting size 16 x 0
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter
Debug Message: Error. String Not Found. Table: SDesignWnd String Name: NoFilter