I don't know offhand what the Lithtech problem is. Something about your system or setup is confounding the program. The most common way to create a setup problem is to install the game, then uninstall it improperly (not necessarily by doing anything wrong), and then re-installing it to a different location. But this is probably not the case.

The most likely culprit is either a bad driver or a bad DirectX setting. Make sure you're running the latest release of whatever version of DX you have -- 9.0c or 8.1. Make sure your drivers are compatible with your version of DX. Tell us your hardware configuration.