If you run dxdiag (click Start | Run, type in dxdiag and hit Enter), does it report any problems?
Did you change your monitor resolution or refresh rate? Since you have to turn the monitor off and on again to reset it, DirectX might be trying to switch to too high a refresh rate, or something. After starting the game, did you try turning the monitor off and on again? If so, does that help, or go you need to reboot first to get out of the game?
Do you have any video filters recently installed? At least the
ReClock DirectShow Filter needs to be disabled to play the game videos. In Windows Explorer, if you browse to the '
..\Beyond Divinity\Static' folder, can you view the '
intro.mpg' video?