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The exact same thing happens to me. I found out through the support page that this game will not work with Ati Radeon HD graphics cards, which I have. You can only play this game on older Nvidea or Radeon cards basically. If you are using an older card, you may want to update the drivers to see if that helps.
and to make it work (well only on the first 2 levels properly) you need to go into your documents and settings and into the starship troopers folder, once inside then go into the settings folder and open the file in there. then edit the "distort" line from 1 to 0