Karnifax

I'm having an issue since installing Windows 7 my graphics are bright and the toons look cartoonish. I verified that my resolution and refresh rate are setup correctly in the game. my powers are also blocky looking. Any suggestions? My specs:

AMD Athlon 64x2 Dual Core 6000+ Chipset
4GB DDR2 mem
3.10 GHZ
Nvidia 9500GT graphics card.
Windows 7 is running Direct X 10

I haven't been online for a day or so then when I attempted to bring up the game I recieved the following error message: your data might be corrupt please run the patcher and try again then I can't get on the game. So then I uninstalled the game and tried to reinstall then I get a runtime error. I have never had problems like this before so any help given will be appreciated. thanks.