The following is Take 2's response to my detailed technical spport question that included full logs from the error. They even included a link to the CivFanatics tech support forum, trying to pass off their support issues to this forum.
Dear Sir/Madam
Thank you for contacting Take 2 Technical Support.
I would recommend a few generic troubleshooting steps, just to ensure there is no issues with the hardware or interferance from other programs.
Firstly I would have you ensure the drivers for the graphics and sound card are the most up to date, so that both devices are running at optimal performance. You would need to make sure you know what graphics and sound card you have, so open the directx diagnostic tool. Click on Start, then run, type dxdiag and hit ok. Click on the display tab where you will see the manufacturer and model (chip type) of video card, on the right is the date and version of the currently installed driver. Click on the sound tab to find the name and again on the right the driver date and version. If you are unsure where to go for the drivers, search on some search engine such as www.google.com just type in the chip type (video card) or name (sound card). Look for the manufacturer's site from the list, usually the web site given is the manufacturer's name.
Now that the drivers are most current, close down background applications by clicking on start, then run and type msconfig. Click on the startup tab and select disable all. Click apply then close and restart the pc as prompted. Once restarted you will get a message about the configuration utility, click on dont show this message then ok. (you may want to print this so that you can disconnect the modem to ensure safety as this does disable antivirus software.
Empty the temporary files folder by running disk cleanup, ensure at least temporary files is selected. Also run disk defragmenter which will help with the program actually starting up. Spyware can also cause issues with the system, I would recommend downloading adaware and spybot to clear these unwanted files.
If you can start the game at this point lower the graphic quality found from the main menu at advanced, then options and then graphic settings.
Lower the graphic quality to medium and the resolution to 1024x768.
If you still cant get the game to start up correctly try uninstalling the game and if at all possible reinstall from a second cd drive.
For any XML load errors, go to www.microsoft.com and click on downloads.
Search for xml, from the results click on xml parser 3.0 service pack 7.
Download the executable file from near the bottom of the window.
I would also recommend checking the forums for your own research into the problem. go to http://forums.civfanatics.com/forumdisplay.php?f=159 which will take you to the technical support section.
If you still have problems running the game, please send in a directx diagnostic report (start > run > dxdiag > save all information) as an attachment to a reply email.
Please be sure to delete all previous correspondence when replying. This will help us to process your response in a more timely and efficient manner.
Kind Regards,
Take 2 Technical Support