I apologize Nimrod, I hope everything is running for you now. I was searching to see what was causing my game to stop loading after the initial run from the install prompt. It turns out that as the fellas have suggested here, I was missing an obscure driver. For me the fix was not straight forward as I thought it should be.
FIXED:
I downloaded dxwebsetup.exe and ran it. Note: Although I am running Windows 7 64 bit with DirectX 11 version, in order to find the particular driver (to run SweetFx again) this setup runs the DirectX 9C update

and it worked, giving me the missing file, while keeping my DirectX 11 version intact.
