Drivers issue when starting a game  

So at first I thought it was an error concerning the said game, like a bug or so. But then, after I re-installed it, I figured that wasn't the case.
Put an attachment with the error notice.
Anyway, I tried to update my drivers, as the error noted. Went to Start -> Control Panel -> System -> Device Manager. It turned out my drivers are all up to date. I even tried running the compatibility troubleshoot, even though I don't think that's the problem.
To summarize it all, nothing I did helped.
If anyone's encountered the same problem, and if they know how to fix it, please help, because I really don't know what to do anymore. (:
Oh and it's a hidden object game called Nightmare Realm, Collector's Edition.
Thanks! (:

Thanks for the welcoming

Do you have just basic Windows drivers installed for your Radeon card, or do you have ones from ATI/AMD installed?

Err, I'm 99% sure it's the second one xD

It wouldn't hurt to check AMD/ATI's website to see if there is a newer driver for your x1600. I also noticed you have a virtual CD drive. Sometimes the software used to create these drives conflicts with games due to their copy protection. You could try disabling the virtual CD drive and it's software, then trying the game again.

same trouble ((( I used Fixio Driver Finder - it detected my corrupted driver and replaced it =)

Try installing the last DX 9 drivers:
Old Version of DirectX Download - OldApps.com

Scazy said:

same trouble ((( I used Fixio Driver Finder - it detected my corrupted driver and replaced it =)

I can't state this enough, but DO NOT use any programs that claim to be able to find drivers. They rarely work, and the task is far simple enough to do on your own.