Under Windows Server 2003, DirectX and hardware acceleration are turned off by default. Turning them back on solves this problem.

To turn hardware acceleration on, Right-Click anywhere on the desktop and select Properties > Settings > Advanced > Troubleshoot, and then move the Hardware Acceleration slider to Full.

To turn on DirectX, go to Start > Run, type "dxdiag", and then press Enter. When you see a dialog box asking if you want to allow dxdiag to connect to the internet to check for valid WHQL certificates, click Yes. Finally, when the dxdiag window appears, go to the Display tab and check all three boxes to enable DirectDraw, Direct3D, and AGP Texture Acceleration.