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Mischiff,
I have looked at your DXDIAG, and the only thing that I see that I have found can cause a problem with DirectX programs is that your Windows Version is Win 98 First edition, instead of Second Edition. I have run into the past problems with using DirectX products under Windows 98 First edition. You may want to try to upgrade your Windows to Second Edition. You can order this upgrade CD from Microsoft for about $15, I believe.
Microstudio 2.0 and up to version 2.103 didn't use the DirectX as heavily as Version 2.200 and later. We now rely on DirectX for the Player, thus the reason you didn't have the problem in version 2.0.
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Bryan, MTU
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