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Game installation Prob. on Windows 7???

OK, I have had it up to the top of my head and over my head , with this game.
I really like Civilization 4(aware of compatibility problem) and it is vs.1.00. I have installed it have had compatibility problems at first would run the game if forced, however I see many folks having blue screen then black death. I don't want that.
I have tried everything from XP mode to patching and folder changes plus mod adding. The compatible error goes away, but I still get an Error, "Error loading shader files." First what this message and why do I get it? I run on administrator all the time no help either.

SO, now what please help I am very lost? All of the suggestions I have found and read else where have failed to help me fix the error.

I have Win 7 Pro x64 AMD II x3 3.0ghz 4gb mem. XFX HD Radeon HD 4350 512MB 64-bit GDDR2 PCI Express 2.0 x16 HDCP Ready Low Profile graphic card. 500gb HDD.

I know video card is very low in quality, I am going to be updating it very soon. Is this the possible problem?

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