Do you have any other DirectX games you can switch to 98/ME mode, to see if Vista itself has an issue with this?
Did you go directly to the div.exe file in the 'Beyond Divinity' folder to set the compatibility mode, or from the desktop shortcut? If the latter, try the former. It shouldn't make a difference, AFAIK, but it can't hurt to try it.
Did you try checking the option to run the program as an administrator? You must be logged in as an administrator to get that option.
Did you check off the boxes to disable visual themes and desktop composition, assuming they are not disabled by default?
Larian has not been able to reproduce this bug, so there is no fix or patch for it.