I really like that game, despite its negative press! Couldn't tell ya what patch I had but I had no direct X problems.
Game did crash on me once, started to freeze up when I was in the temple during a particualar fight but once by that it worked fine again - I dont know if that was a direct x issue.
I love the combat in this game...I still think it's the best turn based combat I've seen in a fantasy RPG.
I also don't remember Balor - been a while since I played it.