What happens if you run the configuration program before trying to start the game (through the Start menu Beyond Divinity folder, or the configtool.exe file in the install folder)?
Did you install the game to the Program Files path? It might help to install it somewhere else.
In Windows Explorer, try browsing to the install folder and start the game directly, rather than going through the Steam client.
If you right click on the div.exe program file and select Properties, you can try running the game as administrator, or a compatibility mode.
Check if there are files called debug.lst or error.txt in the Beyond Divinity folder. If so, do they list any error messages than might be helpful?
Try deleting the files config.div, slashed.cfg and slashed-d3d6.cfg in the Beyond Divinity folder (if they exist), to force the configuration program to recreate them.
You could check if the dynamic folders are actually empty (and delete any files if they aren't).
Normally the dynamic folders are in the folders '..\Beyond Divinity\Acts\Act1\Dynamic', '..\Beyond Divinity\Acts\Act2\Dynamic', etc.
At least under Vista/7, depending on how the user accounts are set up, if you install the game to the Program Files path, Windows can create separate savegame and dynamic folders for each user, and then map those folders to the game's folder (so it will just see the dynamic folders and saves for the relevant user).
FSAA = Full Screen Anti-Aliasing
I never really noticed a difference with it enabled or not.