I managed to get it working by getting rid of AA. Any AA settings using nvidia Control Panel caused the black screen for me. Letting the application control the AA (Which means lots of ugly jaggies, lets the game run. Running at 1680 x 1050 as well.
I still reckon there is a bit to do about how Win7 handles 3D graphics involved but at least I can run the game, With GWX3 installed as well.