Can someone test this DX7 app and see if it works for you?
Thanks a lot! BTW: I included the dxguid.lib and ddraw.lib too.

LPDIRECTDRAW lpDD;
HRESULT ddrval;
ddrval = DirectDrawCreate( NULL, &lpDD, NULL );
if( ddrval != DD_OK )
{
// Do some error checking here
}


//[Setting Cooperative Level]


ddrval = lpDD->SetCooperativeLevel( hWnd, DDSCL_EXCLUSIVE | DDSCL_FULLSCREEN );
if( ddrval != DD_OK)
{
//Do some error checking here
}


//[Setting Video Mode]


ddrval = lpDD->SetDisplayMode( 640, 480, 8);
if( ddrval != DD_OK)
{
//Do some error checking here
}


//[Creating Primary Surface]


LPDIRECTDRAWSURFACE lpDDSPrimary;
DDURFACEDESC ddsd;
HRESULT ddrval;

//Clear all fields in structure
memset( &&ddsd, 0, sizeof(ddsd) );

//Set flags in structure
ddsd.dwSize = sizeof( ddsd );
ddsd.dwFlags = DDSD_CAPS | DDSD_BACKBUFFERCOUNT;
ddsd.ddsCaps.dwCaps = DDSCAPS_PRIMARYSURFACE | DDSCAPS_FLIP | DDSCAPS_COMPLEX;
ddsd.dwBackBufferCount = 1;

//Create Surface
ddrval = lpDD->CreateSurface( &ddsd, &lpDDSPrimary, NULL );
if( ddrval != DD_OK )
{
//Do error checking here
}


//[Creating Back Surface]


DDSCAPS ddscaps;

LPDIRECTDRAWSURFACE lpDDSBack; ddscaps.dwCaps = DDSCAPS_BACKBUFFER;
ddrval = lpDDSPrimary->GetAttachedSurface( &ddscaps, &lpDDSBack );
if( ddrval != DD_OK )
{
//Do error checking here
}


//[Creating Offscreen Surface]


LPDIRECTDRAWSURFACE lpDDSOffscreen;
DDSURFACEDESC ddsd;
HRESULT ddrval;

ddsd.dwFlags = DDSD_CAPS | DDSD_HEIGHT | DDSD_WIDTH;
ddsd.ddsCaps.dwCaps = DDSCAPS_OFFSCREENPLAIN;
ddsd.dwHeight = 480;
ddsd.dwWidth = 640;

ddrval = lpDD->CreateSurface( &ddsd, &lpDDSOffscreen, NULL );
if( ddrval != DD_OK )
{
//Do error checking here
}