Ok, lets try a different tack.

Could someone please download and run this project?
http://etgames.q.org.za/tmp/Prototype.zip

The code used is the Prototype project provided with unDelphiX. The sum total of the code added is:

Code:
  // in Public Variables
  Surface : TDirectDrawSurface;
  IL : TDXImageList; // Unused
  Temp : Byte;
  ...

  // in DXDraw Initialise
  Surface := TDirectDrawSurface.Create(DXDraw.DDraw);
  Surface.SetSize(256,256);
  ...

  // in DXDraw Finalise
  Surface.Free;
  ...

  // in Timer Loop
  Inc(Temp,10);
  Surface.Fill(Temp);
  DXDraw.Surface.Draw(0,100,Rect(0,0,Surface.Width,Surface.Height),Surface);
When I run this on my machine: In software mode, the surface cycles through shades of blue. If I switch to hardware mode, rendering freezes.

Please, I'd really appreciate some help in fixing this problem?