Thnx for suggestions, I'll try them a bit later tonight.
In the meantime, here's the game log. Gotta mention, I work in IT sector, so i'm not quite a noob when it comes to PCs. I've changed few VGA drivers, from official ATI Catalyst 7.8-7.10, to latest Omega modded Catalysts, but to no avail. Even before I installed PCOWS, I've had newest directx & .NET package, since I regularly update my windows with critical & optional MS patches & fixes. Regardless, I always accept the option to install them from PCOWS installation.
My VGA card is ATI Radeon x1950 GT, and I've had no problem with playing other Directx games (among others, new & very GPU power hungry, like Bioshock or Neverwinter Nights 2).
I've gotta mention (hopefully this won't make someone in Matrix Games angry

), I've installed PCOWS on other PC, just to see if it's a problem with my download, and there it works flawlessly. A bit slow, though, and this PC is in my office, so not really an ideal wargaming environment. I've deleted it afterwards.
This log is form the first running of the game, right after clean installation & patching to the latest version, so all options are set very low.
31.10.2007 21:24:16: ******************** New Game *******************
31.10.2007 21:24:16: Current Directory: D:\Gamez\Panzer Command
31.10.2007 21:24:16: OS Version: Microsoft Windows NT 5.1.2600.0
31.10.2007 21:24:16: CodeBase: file:///D:/Gamez/Panzer Command/PCOWS.exe
31.10.2007 21:24:16: Assembly Name: PCOWS, Version=1.1.3.18704, Culture=neutral, PublicKeyToken=null
31.10.2007 21:24:16: Managed DirectX:
31.10.2007 21:24:16: Microsoft.DirectX, Version=1.0.2902.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35
31.10.2007 21:24:16: Microsoft.DirectX.Direct3DX, Version=1.0.2906.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35
31.10.2007 21:24:16: Microsoft.DirectX.DirectInput, Version=1.0.2902.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35
31.10.2007 21:24:23: Loading Guns...
31.10.2007 21:24:23: Loading Armoured Units...
31.10.2007 21:24:23: Loading Infantry...
31.10.2007 21:24:23: Loading Scenarios...
31.10.2007 21:24:23: Loading Campaigns...
31.10.2007 21:24:23: Loading Tables...
31.10.2007 21:24:23: Assembly Name: Lib, Version=1.1.3.18702, Culture=neutral, PublicKeyToken=null
31.10.2007 21:24:23: Graphics format: R5G6B5
31.10.2007 21:24:23: DeviceIdentifier: d7b71ee2-31c8-11cf-706e-32023bc2cb35
WhqlLevel: 0
Revision: 154
SubSystemId: 574101383
DeviceId: 29320
VendorId: 4098
DriverVersion: 6.14.10.6727
DeviceName: \\.\DISPLAY1
Description: Radeon X1950 GT (Omega 3.8.421)
DriverName: ati2dvag.dll
31.10.2007 21:24:23: Manager Adapter value: 0
31.10.2007 21:24:24: Create device.
31.10.2007 21:24:24: HardwareVertexProcessing
31.10.2007 21:24:24: MultiSampleQuality: 0
PresentationInterval: Immediate
FullScreenRefreshRateInHz: 60
PresentFlag: None
AutoDepthStencilFormat: D16
EnableAutoDepthStencil: True
Windowed: False
DeviceWindowHandle: 0
DeviceWindow:
SwapEffect: Discard
MultiSample: None
BackBufferCount: 1
BackBufferFormat: R5G6B5
BackBufferHeight: 768
BackBufferWidth: 1024
ForceNoMultiThreadedFlag: False
31.10.2007 21:24:24: Create Flags: HardwareVertexProcessing
31.10.2007 21:24:24: Device Type: Hardware
31.10.2007 21:24:43: Current Level: Tutorial
31.10.2007 21:24:44: System.Exception: Error in loading
at GameLib.GameState.GamePlayMachine.Loading.ReDraw(Single dt)
at GameLib.GameState.GamePlayMachine.Loading.OnTime(Single dt)
at Lib.StateMachine.OnTime(Single dt)
at GameLib.GameState.GamePlayMachine.GamePlayStateMachine.OnTime(Single dt)
at GameLib.GameState.GamePlay.OnTime(Single dt)
at GameLib.GameState.GameStateMachine.OnTime(Single dt)
at MainClass.Render(Boolean force)
at MainClass.RenderLoop()
31.10.2007 21:24:44: Program Exited.