C++: Help with direct3d code

Okay Im really having trouble getting this to work properly. There are no errors I could find after I made a crude message handler. I didnt include that code. Why is the texture not being drawn? did I not set a needed texture stage?
Thanks to all those that take the time to help.

Code:

---

//Purpose: Initialize Direct3d
//Returns: Return 1 on success 0 on error
int CDIRECT3D::Initialize_Direct3d(HWND &window_handle)
{
        HRESULT hresult;


        //create device
        //Make Direct3D object
    if((D3D = Direct3DCreate8(D3D_SDK_VERSION))==NULL)
        {
                //error
                return 0;
        }

        hresult=D3D->GetAdapterDisplayMode(D3DADAPTER_DEFAULT,&d3d_displaymode);
        if(hresult!=D3D_OK)
        {
                return 0;
        }



        d3dpp.SwapEffect = D3DSWAPEFFECT_FLIP;
        d3dpp.hDeviceWindow = window_handle;
        d3dpp.BackBufferCount = 1;

        d3dpp.Windowed = false;
    d3dpp.BackBufferWidth = SCREEN_WIDTH;
    d3dpp.BackBufferHeight = SCREEN_HEIGHT;
    d3dpp.BackBufferFormat = d3d_displaymode.Format;
        d3dpp.FullScreen_RefreshRateInHz = D3DPRESENT_RATE_DEFAULT;
        d3dpp.FullScreen_PresentationInterval = D3DPRESENT_INTERVAL_ONE;
        d3dpp.AutoDepthStencilFormat = D3DFMT_D16;
    d3dpp.EnableAutoDepthStencil = 1;



        if(D3D_OK!=(hresult=D3D->CreateDevice(D3DADAPTER_DEFAULT,D3DDEVTYPE_HAL,
                window_handle,D3DCREATE_SOFTWARE_VERTEXPROCESSING,&d3dpp,&d3d_device)))
        {
                return 0;
        }

        //Create vertex buffer
        if(D3D_OK!=(d3d_device->CreateVertexBuffer(sizeof(VERTEX) * 4, NULL,
                D3DFVF_VERTEX, D3DPOOL_MANAGED, &vertexbuffer)))
        {
                //error
                return 0;
        }

        if(D3D_OK!=(d3d_device->SetStreamSource(0, vertexbuffer,sizeof(VERTEX))))
        {
                //error
                return 0;
        }

        //Set vertex shader
        if(D3D_OK!=(d3d_device->SetVertexShader(D3DFVF_VERTEX)))
        {
                //error
                return 0;
        }
       

        d3d_device->SetRenderState(D3DRS_ZENABLE, TRUE);
    d3d_device->SetRenderState(D3DRS_CULLMODE, D3DCULL_NONE);
    d3d_device->SetRenderState(D3DRS_LIGHTING, FALSE);
       
        d3d_device->SetRenderState(D3DRS_ALPHABLENDENABLE,  TRUE);
        d3d_device->SetRenderState(D3DRS_SRCBLEND, D3DBLEND_SRCALPHA);
        d3d_device->SetRenderState(D3DRS_DESTBLEND, D3DBLEND_INVSRCALPHA);
        errorcode=d3d_device->SetTextureStageState(0, D3DTSS_COLOROP,D3DTOP_MODULATE);       
        errorcode=d3d_device->SetTextureStageState(0,D3DTSS_COLORARG1,D3DTA_DIFFUSE);
        errorcode=d3d_device->SetTextureStageState(0,D3DTSS_COLORARG2,D3DTA_CURRENT);
        errorcode=d3d_device->SetTextureStageState(0,D3DTSS_ALPHAOP,D3DTOP_DISABLE );


        d3d_device->SetVertexShader(D3DFVF_VERTEX );

        return 1;
}

IDirect3DTexture8* CDIRECT3D::LoadTexture(char *fileName)
{
  IDirect3DTexture8 *d3dTexture;
  D3DXIMAGE_INFO SrcInfo;      //Optional

  //Use a magenta colourkey
  D3DCOLOR colorkey = 0xffffffff;

  // Load image from file
  if (FAILED(D3DXCreateTextureFromFileEx (d3d_device, fileName, 0, 0, 1, 0,
        D3DFMT_A8R8G8B8, D3DPOOL_MANAGED, D3DX_FILTER_NONE, D3DX_DEFAULT,
        colorkey, &SrcInfo, NULL, &d3dTexture)))
  {
    return NULL;
  }
       
  //Return the newly made texture
  return d3dTexture;
}

void CDIRECT3D::BlitD3D(RECT *rDest,
    D3DCOLOR vertexColour)
{
  VERTEX* vertices;

  //Lock the vertex buffer
  vertexbuffer->Lock(0, 0,(unsigned char**) &vertices, NULL);

  //Setup vertices
  //A -0.5f modifier is applied to vertex coordinates to match texture
  //and screen coords. Some drivers may compensate for this
  //automatically, but on others texture alignment errors are introduced
  //More information on this can be found in the Direct3D 9 documentation
  vertices[0].acolor = vertexColour;
  vertices[0].x = (float) rDest->left - 0.5f;
  vertices[0].y = (float) rDest->top - 0.5f;
  vertices[0].z = 0.0f;
  vertices[0].rhw = 1.0f;
  vertices[0].u = 0.0f;
  vertices[0].v = 0.0f;

  vertices[1].acolor = vertexColour;
  vertices[1].x = (float) rDest->right - 0.5f;
  vertices[1].y = (float) rDest->top - 0.5f;
  vertices[1].z = 0.0f;
  vertices[1].rhw = 1.0f;
  vertices[1].u = 1.0f;
  vertices[1].v = 0.0f;

  vertices[2].acolor = vertexColour;
  vertices[2].x = (float) rDest->right - 0.5f;
  vertices[2].y = (float) rDest->bottom - 0.5f;
  vertices[2].z = 0.0f;
  vertices[2].rhw = 1.0f;
  vertices[2].u = 1.0f;
  vertices[2].v = 1.0f;

  vertices[3].acolor = vertexColour;
  vertices[3].x = (float) rDest->left - 0.5f;
  vertices[3].y = (float) rDest->bottom - 0.5f;
  vertices[3].z = 0.0f;
  vertices[3].rhw = 1.0f;
  vertices[3].u = 0.0f;
  vertices[3].v = 1.0f;

 

  //Unlock the vertex buffer
  vertexbuffer->Unlock();

  //Set texture
  d3d_device->SetTexture (0,texture);

  //Draw image
  d3d_device->DrawPrimitive (D3DPT_TRIANGLEFAN, 0, 2);
}

int CDIRECT3D::Draw_Text_GDI(char *message, int x,int y,int color,HDC hdc)
{
        SetTextColor(hdc,color );
        SetBkMode(hdc, TRANSPARENT);
        TextOut(hdc,x,y,message,strlen(message));

        return 1;
}



int Game_Main(void *parms)
{
        if (KEY_DOWN(VK_ESCAPE))
      PostMessage(main_window_handle, WM_DESTROY,0,0);

        //clear backbuffer
        direct3d.d3d_device->Clear(0,NULL,D3DCLEAR_TARGET | D3DCLEAR_ZBUFFER,D3DCOLOR_RGBA(0,60,128,255),1.0f,0);

        if(SUCCEEDED(direct3d.d3d_device->BeginScene()))
        {
                direct3d.BlitD3D(&drect,0xffffffff);

                direct3d.d3d_device->EndScene();
        }

        direct3d.d3d_device->Present(NULL,NULL,NULL,NULL);


       
        return(1);
}

---