I tried lots of things including what the Eidos support site said (re-install everything in site) to no avail. I was going to sell the game and get the xbox version. Then Leak answered my post with this:

Since you're running the game on Win XP SP 2 using an Athlon 64 - try turning off DEP (see link below) and I bet it'll start working; you don't need to totally disable it, just for trl.exe.

http://support.microsoft.com/kb/875352

And now it works perfectly!

Thanks Leak!