I'm on Windows 2000, which should not be so different from NT. You should be able to install a higher directX-version.
And try not to change the resolution. Whenever I do that, the outcome is catastrophic. As long as I simply overlook the option, everything is fine.
On second thought:
if you go into the startmenue, you'll find a search option, below that a help option, and below that an exe option.
Click the exe option open and type: "dxdiag", then click on "ok".
A window opens with a couple of tests for directX. Do the tests and follow the promptings.
Though updating your directX-version will very probably be the best solution.