Have you already tried double clicking on the setup.exe file in your RO folder, and changing the resolution to 640x480, 800x600, or 1024x768 in window mode?
The error occurs most of the time when you do not start setup.exe the first time you play the game, or when the current resolution is not supported (happens with widescreen laptops most of the time). Switching to non-fullscreen mode could solve the problem.
(Video card drivers seem to be installed - otherwise, Aero would not work.)