ok so what did you do to the downloaded directX package?
did you simply ran it and specified the path? or did you actually *also* opened the specified path after unpacking all the stuff, searched for setup.exe and ran it?
without that forget about functional dx9. the fact that win 7 comes with dx11 bundled doesn't automatically mean it has dx10 or dx9 installed.
where exactly have you set the game's resolution? in ddraw.ini or f2_res.ini? try in both, the fact you're running in a window tells me you've set graphics mode 6 in ddraw.ini if so you need to specify game's resolution in both ddraw.ini and f2_res.ini .
one more thing.. what exactly did you set in the resolution settings, that you suspect it's causing failiure
basically download this the 10 jun 2010 is no longer available it appears.. only web setup is available now.
https://www.microsoft.com/en-us/download/details.aspx?id=35