"Failed to set up the graphics system"

This message shows up every time I try to run DFO. Recently, I just updated to Windows 7 32bit and thats when everything started going haywire. Everything except my nexon games works just fine, and its starting to drive me up the wall. I've been googling non-stop for the past few days, and not much has turned up. I've heard this was pretty common back when it first came out, but not a lot of info was kept on how to fix it.

Anyone know what could be done about this? I'd show you my specs, but its a long list.