Whenever I try to start a mission it says: ‘failed to locate texture’. I can then hear sound but not see the screen.

Some of the basic trouble shooting questions:

Does it say which texture it’s looking for?
What OS are you running on? (WinXP, Vista, Mac)
Do you have the latest patch?
Have you installed any mods, or changed any of the data files yourself?

It doesn’t say which texture it’s looking for.
Vista : (
I have version 1.27
I did install mods but then I uninstalled everything and then re-installed. Still doesn’t work.

Any help would be greatly apprerciated.

Since you’re running Vista, try setting the game to run as Administrator. Yes, your account probably has admin rights, but if the game is installed in Program Files, you will run into issues even if your account has admin rights. I don’t know why, but that fixed quite a few issues I was having.

Check the My Documents folder for any leftover files. There is probably a Democracy2 folder in there, unless you got rid of that as well. It may contain some leftover files that the game is looking for that are no longer there.

This is almost certainly true. Also, the game writes debug data in a folder called \Democracy2\debugdata. The drawdebug.txt file will have a more helpful error message, and the line beforehand should tell you the name of the texture it cannot find.