Can't get the new version to start either but I noticed it includes a level editor now. I got the level editor to work after installing a missing dll file and was able to load a level and look at it. I was hoping I could launch the game from the editor but unfortunately no such option.
Curiously enough after installing the dll file I no longer got the error message when starting the old version, it just freezes at a black background with the hourglass mouse icon (mouse is still working), new version does the same.
Probably an issue with my GeForce 210 card even though it supports OpenGL 3.3 and the game requirements only call for 2.0 - the card runs Oblivion fine so I figured it would work for this too.
Oh well at least checking out the levels is fun.