Not sure what could be the problem, I have the newest driver installed, the newest version of DirectX as well but same thing.
Here's the log btw if it helps:
Thread Log: Executing destructor for Redirect_Stdout
STDOUT Redirection Init failed: GetStdHandle returned NULL.
Thread Log: Executing destructor for Redirect_Stdout
STDOUT Redirection Init failed: GetStdHandle returned NULL.
PCSX2 0.9.7.r1982 (modded) - compiled on Oct 8 2009
Savestate version: 8b410003
x86Init:
CPU vendor name = GenuineIntel
FamilyID = 5
x86Family = Intel® Core i7 CPU 920 @ 2.67GHz
CPU speed = 3.201 ghz
Cores = 8 physical [8 logical]
x86PType = Standard OEM
x86Flags = bfebfbff 0098e3bd
x86EFlags = 28000000
Features Detected:
MMX.. SSE.. SSE2.. SSE3.. SSSE3.. SSE4.1.. SSE4.2
Initializing PS2 virtual machine...
Allocating memory for recompilers...
Loading plugins...
Binding GS : C:\Program Files (x86)\pcsx2\plugins\GSdx-SSE4.dll
Binding PAD : C:\Program Files (x86)\pcsx2\plugins\LilyPad.dll
Binding SPU2 : C:\Program Files (x86)\pcsx2\plugins\SPU2-X.dll
Binding CDVD : C:\Program Files (x86)\pcsx2\plugins\CDVDiso.dll
Binding USB : C:\Program Files (x86)\pcsx2\plugins\USBnull.dll
Binding FW : C:\Program Files (x86)\pcsx2\plugins\FWnull.dll
Binding DEV9 : C:\Program Files (x86)\pcsx2\plugins\DEV9null.dll
Plugins loaded successfully.
Thread Log: Executing destructor for PersistentThread
Initializing plugins...
Init GS
Init PAD
Init SPU2
Init CDVD
Init USB
Init FW
Init DEV9
Plugins initialized successfully.
Opening plugins...
Opening GS
Opening PAD
Opening SPU2
Opening CDVD
detected blocksize = 2048
isoOpen: D:\Games\star ocean.iso ok
offset = 0
blockofs = 24
blocksize = 2048
blocks = 2274624
type = 2
* CDVD Disk Open: DVD, Single layer or unknown:
* * Track 1: Data (Mode 1) (2274624 sectors)
Opening USB
Opening FW
Opening DEV9
Plugins opened successfully.
Bios Version 1.0
Load Bios Warning: rom1 not found (this is not an error!)
Load Bios Warning: rom2 not found (this is not an error!)
Load Bios Warning: erom not found (this is not an error!)
Framelimiter rate updated (UpdateVSyncRate): 59.94 fps
Issuing EE/iR5900-32 Recompiler Reset [mem/structure cleanup]
# Initialize memory (rev:3.17, ctm:393Mhz, cpuclk:295Mhz )
# Total accessable memory size: 32 MB (B:2:8:0)
# TLB spad=0 kernel=1:12 default=13:30 extended=31:38
# Initialize Start.
# Initialize GS ...
# Initialize INTC ...
# Initialize TIMER ...
# Initialize DMAC ...
# Initialize VU1 ...
# Initialize VIF1 ...
# Initialize GIF ...
# Initialize VU0 ...
# Initialize VIF0 ...
# Initialize IPU ...
# Initialize FPU ...
# Initialize User Memory ...
# Initialize Scratch Pad ...
# Initialize Done.
EE DECI2 Manager version 0.06 Dec 10 1999 17:48:37
CPUID=2e20, BoardID=0, ROMGEN=2000-0117, 32M
# Loader 'rom0

SDSYS'

c=00200008
microVU1: Cached MicroPrograms = [001] [001]
ExecutePs2GameDisk
CDVD.KEY = 94,69,95,39,45,04,05
loadElfCRC: cdrom0:\SLUS_204.88;1
loadElfFile: cdrom0:\SLUS_204.88;1; CRC = 23A97857
Program name = cdrom0:\SLUS_204.88;1
# Restart.
# Initialize GS ...
# Initialize INTC ...
# Initialize TIMER ...
# Initialize DMAC ...
# Initialize VU1 ...
# Initialize VIF1 ...
# Initialize GIF ...
# Initialize VU0 ...
# Initialize VIF0 ...
# Initialize IPU ...
# Initialize FPU ...
# Initialize User Memory ...
# Initialize Scratch Pad ...
# Restart Done.
# LoadExec 'rom0

S2LOGO'

c=00200008
init rpc
OSDSND
CD Init
CD Disk Ready
DecSet Write: 53
DecSet Write: 00
# Restart.
# Initialize GS ...
# Initialize INTC ...
# Initialize TIMER ...
# Initialize DMAC ...
# Initialize VU1 ...
# Initialize VIF1 ...
# Initialize GIF ...
# Initialize VU0 ...
# Initialize VIF0 ...
# Initialize IPU ...
# Initialize FPU ...
# Initialize User Memory ...
# Initialize Scratch Pad ...
# Restart Done.
# LoadExec 'cdrom0:\SLUS_204.88;1'

c=00100008
microVU0: Cached MicroPrograms = [001] [001]