I have the same problem.
The game started the first time I ran it, but it was sluggish, so I exited to try to change the settings.  Then I was getting the Renderer #0 Failure error. Default settings didn't fix the error.
 I uninstalled my (latest) Nvidia drivers, reinstalled them (I double-checked that they are the latest), and then the game ran fine. I played it a couple of sessions, and then when I started it again today, it was sluggish again at the menu screen, so I exited it, tried to start it again, and I got the Renderer #0 Failure error again.
I don't want to have to reinstall my drivers again, so I'm going to try to wait for a fix for this.
Resolution: 1920x1080
CPU: AMD Dual Core 5200+ 2.60GHz
2 GB RAM
Nvidia GeForce 9800 GTX+ (512MB)
Windows 7 64-bit
EDIT:
I've thought I've found fixes for this problem, but after a few restarts the error occurs again. I can't find a reproducible fix for this.
Hopefully this can be fixed soon.
Here's the hpl.log:
-------- 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: 1920 x 1080 - 32 bpp
 Init Glew...OK
 Setting up OpenGL
  Vendor: NVIDIA Corporation
  Renderer: GeForce 9800 GTX+/PCI/SSE2
  Version: 3.3.0
  Max texture image units: 32
  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: 8
  Max color render targets: 8
  Packed depth-stencil: 1
  Texture float: 1
  GLSL Version: 3.30 NVIDIA via Cg compiler
  ShaderModel 2: 1
  ShaderModel 3: 1
  ShaderModel 4: 1
  OGL ATIFragmentShader: 0
ERROR: Frame buffer 'Deferred_GBuffer_Main' is not complete! Format is unsupported!
ERROR: Could not create frame buffer for Deferred renderer type: 0!
FATAL ERROR: Renderer #0 could not be initialized! Make sure your graphic card drivers are up to date. Check log file for more information.