Moderator Action: Moved to technical subforum.
Don't forget, DX11 is Win7 only.
Did it place a _DX11 exe in your download? Perhaps the demo doesn't include it?
Seems to be a deeper probem. Dx10 card on Win7 64 bit here, still no eye candy
Says I need SP2. There is no such thing, not even SP1 yet
Looks not that much better than FFH, und is way to slow for how it looks. I suspect DX9 is not really optimized, or if it is, then for low quality graphics ...
Steam might think you are running vista (try help-> system information in steam)
Go to C:\Program Files (x86)\Steam, right click on steam.exe, go to properties, got compatability, click on change settings for all users. Unselect "run this program in compatability mode"
Verified game cache. Updated my graphics card drivers and my DX10.1 installation. Upon launching the game I see this:
http://img825.imageshack.us/img825/3255/dx1011.jpg
Hmm...everybody else who has had this problem was running Steam in compability mode, it would be strange if you werent (I assume you have checked).