I get the 'Failed to initialize render: Your display doesn't support the selected resolution... under 'Display Settings'' however when I go to change my resolution there are no options (it is blank). They appear when I select windowed mode, however in windowed mode I get the error: 'Failed to initialize render: Windowed mode not supported on this adapter'. My adapter is an ATI HD Radeon 5670. Thanks for your help.

Radeon 5670 should work. I suggest you reinstall the latest graphic card drivers (uninstall the old ones first) and reinstall DirectX and try again.