I know that this is a large bump, but I found this thread during a Google search.
Anyways, I have Windows 7 64-bit and I followed your instructions and I am now able to play the game without all the graphical problems! :)
However, I am having a huge issue with my mouse lagging and much of the game being choppy (although the flying itself is not choppy for some reason). I am able to fly fine with no lag at all, but I can't use the mouse very well at all for locking on and such. This is also a huge problem in the menus as my mouse is going all over the place trying to select which missiles to use and just going through the menus to get flying.
Do you know what may be causing my problem? I am using an ACER Aspire 7740G-6930, if that makes any difference.
Thank you!