I installed a live version today to a different directory, and got the same error. I deleted eqgraphicsdx9.dll, eqmain.dll, and eqclient.ini, then ran the OptionsEditor.exe, and finally got it to run when forced to start in 640x480. Once in-game, I was able to select a different resolution and play with no problems.
So a live version works just fine, I can confirm it's not my hardware.
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