Issues like this are really hard to fix when you can't actually sit down at the machine and play with it. Most anything I can offer will be little better than blind guesses, but even a blind woman can hit a bullseye every now and again, eh?

By what you've posted above, my initial guess would be that the key issue lies somewhere between newer versions of Direct X (they no longer support the entire functionality of 9.X and below as of version 10+) and the 64 bit OS.
I myself have held off on moving to a 64 bit platform for this exact reason. While I know this limits the amount of RAM my system can address, there's a huge list of legacy software (mostly older games) that just hate the 64 bit architecture and are either a real pain or downright impossible to get running smoothly.
Now one of the reasons I bring DX into this is because of the little oddity where it seemed to work after rolling back your video driver until another reboot. Knowing a little something about how video drivers and windows works, I'm wondering if the driver might have been using older Direct X libraries (which the game liked), which were subsequently nuked by windows on your next startup.
I know for a fact that windows loves to "take a look around" and restore files it thinks need to be a certain way since at least XP, and this sort of "computer knows better than the user" behavior is only getting worse and worse.
Anyone who doesn't believe me (and knows what the hell they're doing please) try locating and deleting say "notepad.exe" from your windows system folder on XP or above. There are ways to get rid of (or more to the point, replace) it, but it's not so simple. The OS will just keep putting it back, even without a restart.
Anyhoo... I'm babbling. =/
I'm not sure if this is in fact the issue you're experiencing, but given what I know so far, it's not a bad guess.
As far as what to do... well, there's a few things we can try. For starters, the one I would recommend would be to run a VM of an older windows and try running the game from there.
The reason I'd try this first is that doing so won't "roll back" your actual drivers or OS in any way, which means it can keep doing everything else like the shiny new toy it is rather than "gimping" it elsewhere just to make it happy with one older game.
Now the Virtual Machine used to offer you the ability to go all the way back to windows 95, but that's gotten rather hard to do now. What's still pretty easy though is to run XP or Vista in a virtual environment on a windows 7 system, which may just solve your problem.
Check it out here:
Windows Virtual PCIf that doesn't work, the next idea I'd offer would be to begin playing around with the settings both in the game files and your windows display mode for resolution and color depth among some other odds and ends...
Failing that, things start to get more complicated, so let's take these one at a time and see if we get lucky on the easy ones. =)