Are you trying to launch it from steam after you install 227? There's a possibility that steam may try to repatch a few files to work but I'm not sure. I don't think many people have actually confirmed using the steam install.

The renderer infinite loop may be a simple error however. It could be that it's detecting something wrong and tries to set a resolution not compatible, then tries to fallback to the failsafe which may not also be compatible. 

However, we may be able to prevent this.

Install 227h, then before doing anything, open both default.ini and unreal.ini

search for "[WinDrv.WindowsClient]" with no quotes.
You will see these values that you will want to modify.

Code:

WindowedViewportX=640
WindowedViewportY=480
FullscreenViewportX=800
FullscreenViewportY=600
 

I would recommend setting WindowedViewportX to 800, and Y to 600, then match the fullscreen to match your desktop resolution. This might prevent the infinite loop. If it still occurs, wait a minute or two to force close it, then put your logfile up on www.pastebin.com and post it here for us to read to try to help you further.

227 works well with steam version of unreal. Just copy unreal directory from stem installation somewhere, when patch it with 227.
And try opengl, as Smirftsch mentioned above.