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I'm currently running this game on Windows 7 64, and I've been trying to fix this problem since release. I have attached a screenshots of what the opening cinematic looks like on my screen. The audio is working, but that's about it. I have tried the "-no3d -doublebuffer" solution, as well as running the game as admin, running compatibility mode, installing the unofficial patch and installing the high res patch.

Does anyone have a possible solution for this problem?
Attachments:
Is it just the movies that are causing the problem? Does the rest of the game look fine? If you graphics drivers aren't up to date, try updating them. Otherwise, I wonder if there's some external program needed to play the videos; I've had other games that required Quicktime to run the cinematics, for instance. Updating Quicktime fixed video problems for me in that case. But I've never personally had problems with Arcanum's cinematics so I'm not sure. Anyone else have ideas?
Looks like a codec issue of some sort.

Could try finding some different ones, or disabling the ones you have.
Sorry I didn't reply sooner.

I actually got the game working. I updated my graphics drivers, and it seems that was enough. This is probably the last solution I would have thought of myself, so thanks a bunch for that! A new problem is that my companions portraits show the wrong NPC, but it's no biggie, so I can live with that :)

Thank you so much for your help.
Glad to hear the drivers fixed the problem. I don't know what could cause the character portraits to be messed up though... there are a few other threads that discuss how to add custom portraits, so maybe take a look at those and then see if your default portraits are misnamed / in the wrong place? That seems pretty unlikely though. Anyone else know what could cause that?
I think it's more like a graphic glitch. It's nothing big, it's just sometimes when I pan the camera the npc portraits will change places or show the same portrait for a few seconds. It's not gamebreaking or anything, but if it helps, then I didn't have the problem before the driver update.