trace:d3d:IDirect3DDevice8Impl_SetRenderState (0x4a540020)->(153,0) not
handled yet
This says the apps has called (or as part of replaying a state block, we have called) set render state, with parm 153 == D3DRS_SOFTWAREVERTEXPROCESSING, and we haven't implemented it, but this would not account for an exception. That render state just tells d3d not to do software rendering, it wants hardware (I think, from memory), but doesn't change any parms / behaviour from d3d8.
The question is where does it trap and why. This is usually the golden question, and a backtrace may help but might not - it all depends on what has happened. This is where we can spend hours trying to work out what has gone wrong.
I remember you mentioned the resolutions were not being shows - Your d3d trace you sent me showed us returning 15 or 16 different display resolutions / bpp, so I don't know why it wasn't coming out.
Jason