OldUnreal (Engine)

I've setup Unreal on a few computers to prepare for a LAN party but I cannot get it to load on one of the systems. Hoping someone can help me out with this problem.
The game displays the splash screen and then it opens the game window and immediately closes and displays an error. The error doesn't have any sentences... just words and ">" in between them. It will not load safe mode either. I have tried patch 224 and the new 227e.
The unreal.log file has a critical line that seems to complain about the fire torches in the opening castle sequence.

Here's the system's specs:
HP Compaq nx9420 laptop
Intel Core Duo processor T2400 1.83-GHz
4Gb RAM
ATI Mobility Radeon X1600
Windows Server 2003 R2 with SP2

sounds like a .INT missing or that logo bitmap is corrupt..

Is the logo.bmp in the help folder 28.5 KB (29,286 bytes)?

edit: I see thats running windows server..

Is direct X's video accelleration enabled in dxdiag?

It does load the logo (that's what I meant by splash screen). Yes DirectDraw and Direct3D are both enabled and sound and video acceleration are set to full.

Post here the "Critical: ..." lines from Unreal.log.