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Hey everyone, I ran into this problem a few days ago and came across this thread http://www.gamefaqs.com/boards/genmessage.php?board=952533&topic=46195092
Where nobody seemed to be able to resolve it. I fixed this problem the otherday and everything works.
What you have to do is install directx9
BUT THEN YOU MUST DO THIS PART AFTER INSTALLING DIRECTX9
go to the C:\windows\system 32\
then copy all the d3dx9_xx.dll files to here:
64bit windows C:\Program Files (x86)\Rockstar Games\Bully Scholarship Edition
32bit windows C:\Program Files\Rockstar Games\Bully Scholarship Edition
Once you have all the dll files in the same directory as Bully.exe, the game uses the libraries from it's local directory.
Perhaps this fix may work for several of you other guys that I have the same problem.
I will not be returning to this thread to keep an eye on it, i spent about and hour getting this working the other day, and noticed that this information had not been published online, so here it is, and goodluck.