Note: This was to be a bug report, but I found a solution that was not mentioned anywhere.
Received the following issue on starting the game.
ERROR - FMOD[Failed to getDriverCaps] (37) An invalid parameter was passed to this function.
I tried the few posts offering advice of changing the setting in the “prefs.ini”, and in the file “config.txt”. Both did not do anything.
Next was to delete the game directory in the “my games” directory. Again nothing.
This is were most forum posts stop helping, but I found a comment about drivers, which did not help. (windows 7 64bit, up to date according to window’s updater).
Next was a post on the steam game support mentioning running the direct x setup which came with the game install files. This did the trick and the game now starts.
If this is needed, someone needs to contact valve and have them have the direct x config run on the start of the game, as I know other games do do this.