|"Setdisplaymode Failed 1280 x 1024"|
Sounds like your graphics card doesn't support 1280 x 1024 resolution which is required for the game to run.
Have a look in Display Properties to see what display resolutions are supported.
If 1280 x 1024 is not in the list, that's the cause of the problem.
In that case, new graphics card is required which can do 1280 x 1024 (monitor must be capable of that resolution too).