And if you have a Windows Server OS installed, you may have to take extra steps to get multimedia apps working (found out the hard way that Win2k3 Server refused to run LFS first-time).
The easiest way to find out if it's a DirectX problem is:
1) Go to Start->Run... and type dxdiag, make sure the option to check for WHQL certificates is checked. Under the Display tab, if you see that any of the three acceleration boxes on the left are disabled, LFS is not working because it requires hardware acceleration.
If that's the case, do this:
1) Go to the Settings tab in Display by right-clicking anywhere on the desktop and selecting Properties.
2) Click on Advanced and you'll get a warning and disabled DirectX features, ignore it and go to the Troubleshooting tab.
3) Move the Hardware Acceleration slider to maximum, accept changes by clicking OK.
4) Go back to dxdiag as you did before, and this time the acceleration boxes in the Display tab are not greyed out. Enable them, close dxdiag and you're good to go.