Update.....
Yes DX8.1
I have now found it's - 'set display mode 1600,1200,16' causing the problem. Yet whatever I set it to (even 640*480) it still crashes. Remming out this line removes the problem, yet of course the graphics are now bitty.
I have even tried re-running the update, first time it crashed !. The second time it ran yet only seemed to update/replace a few files, the others it said were ok (shame it didn't replace them all).
I have also tried un-installing to re-install. Yet this also crashes ! (says a file is in use by another app even though it created it itself !).
I'm left with the following options me thinks...
1. Wait for patch 4
2. Remove the files and reg entries manually.
3. Update to dx9 ?? (though all other software runs fine is all res).
Any clues ?....hope the 'patch 4 team' are reading this - damn bugs make it annoying and not a joy.