Originally Posted by nuclearspecs
Well, the only thing that stood out to me was your Direct X version. It is 11, which means that 9 should be included in it.... but not always the case. I would google the DirectX9 Runtime Installer, download it and see what happens. My guess is that a .dll or two are missing that for some reason are not producing error messages.
BTW, you can install DX9 from your game disc, which will make sure the game is happy. It will not harm your DX11.
Evil Q is the best resident troubleshooting resource, and he may be able to be more helpful in this regard.
@Taskusorsa - Well, you knew your driver status was fail, but why is the question still... DriverSweeper....
If you have managed to clean out your HDD of old driver remnants, and then installed the latest (276.xxx) driver for that GTX275 (nice....), and it is still fail, my only other advice would be to follow my advice to nuclearspecs above and make sure your DX9 is fully updated.
I am unsure about troubleshooting Steam games, as I am not really sure how much of the game is happening on your machine, and how much is handled by the Valve.
Again, perhaps Astro or Q can be more helpful...