Can't get the game to work properly

[phospheratu]

I have downloaded the patch, have the latest drivers for my ATI card, and have tried playing around with all the settings, but the game just will not work properly.
When I start the game, in the scene where I wake up on the bed, the screen is nothing but multicoloured vertical lines. The same thing happens when I right click an object to look at it.

My card is an ATI Mobility Radeon HD 2400
I am running Windows Vista


A few other things I am noticing:

- The vice does not open and close even though I turn the handle
- I dropped the toolbox on the ground, it smashed into pieces that were in no way interactive, and after a short time these pieces disappeared.
- The pencil disappeared into thin air when I was holding it