Finally got passed "Failed to Initilize" but...........

I was finally able to get passed the "failed to initilize" screen by downloading the latest Directx 9 from the Windows update page. The game loads and plays the intro, but then runs extremely slow. The game will take up to 2 or 3 minutes to respond to my mouse clicks. The game won't load into the main game play screen. This is extremely frusting!!! Please help me!
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Please run dxdiag and send the report to me along with your debug.err file from the Political Machine installation folder to me at cbegle@stardock.com

Here are instructions for running dxdiag in case you need them:

1) Click on your windows start button
2) Click on Run
3) type the word dxdiag in the dialog box and click OK.
4) Allow it to check to see if your drivers are digitally signed, let it run its tests
5) Click Save all information and save the file somewhere you'll be able to find it.