I'm having similar issues, here is my dxdiag.
(as a side note, should I update my sound driver?)
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System Information
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Time of this report: 8/26/2009, 23:59:20
Machine name: STEVEN-PC
Operating System: Windows Vista™ Home Premium (6.0, Build 6001) Service Pack 1 (6001.vistasp1_gdr.090302-1506)
Language: English (Regional Setting: English)
System Manufacturer: OEM
System Model: OEM
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: Intel(R) Core(TM) i7 CPU 920 @ 2.67GHz (2 CPUs), ~3.2GHz
Memory: 2038MB RAM
Page File: 595MB used, 3722MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 10
DX Setup Parameters: Not found
DxDiag Version: 6.00.6001.18000 32bit Unicode
------------
DxDiag Notes
------------
Display Tab 1: No problems found.
Sound Tab 1: No problems found.
Sound Tab 2: No problems found.
Sound Tab 3: No problems found.
Input Tab: No problems found.
--------------------
DirectX Debug Levels
--------------------
Direct3D: 0/4 (retail)
DirectDraw: 0/4 (retail)
DirectInput: 0/5 (retail)
DirectMusic: 0/5 (retail)
DirectPlay: 0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow: 0/6 (retail)
---------------
Display Devices
---------------
Card name: NVIDIA GeForce GTX 260
Manufacturer: NVIDIA
Chip type: GeForce GTX 260
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_05E2&SUBSYS_12573842&REV_A1
Display Memory: 1646 MB
Dedicated Memory: 883 MB
Shared Memory: 763 MB
Current Mode: 1920 x 1200 (32 bit) (60Hz)
Monitor: SyncMaster 2433BW/2433GW,SyncMaster Magic CX2433BW/CX2433GW(Digital)
Driver Name: nvd3dum.dll,nvwgf2um.dll,nvwgf2um.dll
Driver Version: 8.15.0011.9038 (English)
DDI Version: 10
Driver Attributes: Final Retail
Driver Date/Size: 7/14/2009 14:54:00, 7565824 bytes
WHQL Logo'd: n/a
WHQL Date Stamp: n/a
Device Identifier: {D7B71E3E-46A2-11CF-BC78-5C3201C2C535}
Vendor ID: 0x10DE
Device ID: 0x05E2
SubSys ID: 0x12573842
Revision ID: 0x00A1
Revision ID: 0x00A1
Video Accel: ModeMPEG2_A ModeMPEG2_C ModeVC1_C ModeWMV9_C
Deinterlace Caps: {6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt retch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(UYVY,UYVY) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(UYVY,UYVY) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(UYVY,UYVY) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(UYVY,UYVY) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt retch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(YV12,0x32315659) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(YV12,0x32315659) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(YV12,0x32315659) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YV12,0x32315659) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt retch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_PixelAdaptive
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(NV12,0x3231564e) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY DeinterlaceTech_BOBVerticalSt retch
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(IMC1,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(IMC1,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC1,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC1,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(IMC2,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(IMC2,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC2,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC2,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(IMC3,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(IMC3,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC3,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC3,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(IMC4,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(IMC4,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC4,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC4,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(S340,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(S340,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(S340,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(S340,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{6CB69578-7617-4637-91E5-1C02DB810285}: Format(In/Out)=(S342,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{F9F19DA5-3B09-4B2F-9D89-C64753E3EAAB}: Format(In/Out)=(S342,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(S342,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
{335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(S342,UNKNOWN) Frames(Prev/Fwd/Back)=(0,0,0) Caps=
DDraw Status: Enabled
D3D Status: Enabled
AGP Status: Enabled