System specs: P4 2.8 Ghz, 1GB RAM, ATI Radeon 9250, all drivers updated, including directx.
Everything starts up fine, but I cannot set the graphics quality higher than 3, and all the characters (LeChuck, Elaine, etc...) look like masses of jumbled polygons. Everything else looks fine, and all the Strong Bad games work fine on my machine, as well.
I've tried just about all the in-game settings, various resolutions, graphics settings 3, 2, and 1. No luck. The background objects look great, the characters look like crud.