Demo not working correctly

[TyjanIgarushi]

I'm also having the same problem as well. I've done everything suggested in the X-series part of the guide to no avail. I've reinstalled the game and my drivers, I've tried graphical settings from the highest my PC can allow to the lowest settings I can select, running it with both fullscreen and windowed.

Just like the OP, the Frictional logo and the other logo is stretched and there's doubles of them stretched out and the Loading logo has 4 logos on them. The menus work fine, but as soon as I start the game, the speech is the only thing that goes and the game is horribly laggy. The audio also take s a while to load, so I'm guessing the game is just running VERY low FPS. There's a black screen unless I Ctrl+Alt+Delete, which shows the game and promptly freezes the game when I do so.

Here's my Specs (From DXDiag):

Processor: AMD Athlon™ 5000 Dual-Core Processor, MMX, 3DNow (2 CPUs), ~2.2GHz
Memory: 2048MB RAM
Card name: Radeon X1650 Series PCI-E Card
OS: Windows XP Professional (5.1, Build 2600) Service Pack 3 (2600.xpsp_sp3_gdr.100427-1636)

And here's my most recent hp.log file:

-------- THE HPL ENGINE LOG ------------
Engine build ID 20100818114615

Creating Engine Modules
--------------------------------------------------------
Creating graphics module
Creating system module
Creating resource module
Creating input module
Creating sound module
Creating physics module
Creating ai module
Creating gui module
Creating generate module
Creating haptic module
Creating scene module
--------------------------------------------------------

Initializing Resources Module
--------------------------------------------------------
Creating loader handlers
Creating resource managers
Adding loaders to handlers
--------------------------------------------------------

Initializing Graphics Module
--------------------------------------------------------
Setting video mode: 1024 x 768 - 32 bpp
Init Glew...OK
Setting up OpenGL
Vendor: ATI Technologies Inc.
Renderer: Radeon X1650 Series
Version: 2.1.8545 Release
Max texture image units: 16
Max texture coord units: 8
Max user clip planes: 6
Two sided stencil: 1
Vertex Buffer Object: 1
Anisotropic filtering: 1
Max Anisotropic degree: 16
Multisampling: 1
Texture compression: 1
Texture compression S3TC: 1
Auto generate MipMaps: 1
Render to texture: 1
Max draw buffers: 4
Max color render targets: 4
Packed depth-stencil: 1
Texture float: 1
GLSL Version: 1.20
ShaderModel 2: 1
ShaderModel 3: 1
ShaderModel 4: 0
OGL ATIFragmentShader: 1
Adding engine materials
Initializing DevIL
Vendor String: Abysmal Software
Version String: Developer's Image Library (DevIL) 1.6.8pre Aug 12 2006
Version Number: 168
Adding engine post effects
--------------------------------------------------------

Initializing Sound Module
--------------------------------------------------------
Initializing OpenAL
Available OpenAL devices:
0. Generic Hardware on C-Media CM6501 Like Sound Device(OpenAL default)
1. Generic Software on C-Media CM6501 Like Sound Device
Trying to open device 'Generic Software on C-Media CM6501 Like Sound Device'... Success!
Number of mono sources: 32
Streaming setup: 4 Buffers x 262144 bytes each
--------------------------------------------------------

Initializing Game Module
--------------------------------------------------------
Adding engine updates
Initializing script functions
--------------------------------------------------------

User Initialization
--------------------------------------------------------
- DEMO VERSION -
--------------------------------------------------------

Game Running
--------------------------------------------------------
-------- Loading map 'menu_bg.map' ---------
Cache Loading: 4398 ms
Entities: 1703 ms
Compilation: 1 ms
Total: 6265 ms
Meshes created: 22
Bodies created: 5
-------- Loading complete ---------
Setting profile: 'Tyjan' Path: 'C:\Documents and Settings\Tyjan Igarushi.TYJANIG\My Documents/Amnesia/MainDemo/Tyjan/'
-------- Loading map 'demo_00_rainy_hall.map' ---------
Cache Loading: 10430 ms
Entities: 17721 ms
Compilation: 32 ms
Total: 28841 ms
Meshes created: 132
Bodies created: 42
-------- Loading complete ---------

EDIT: Also, just ran the Graphics Compatibility Test Round Two and everything matched up with the pictures.