Graphics Error

OK, I never used to have trouble with project64 and have played dozens of games on it, but today when I start it up I get:

"Graphics Error
Direct3D failed to initialize
Error code:8876086A
D3DERR_NOTAVAILABLE

The default or selected video plugin is missing or invalid.
Check that you have at least 1 compatible plugin in your plugin folder."

Then it gives me the settings box, and says I have Jabo's Direct3D 8 1.6 and 6 1.5.2 available. Choosing either of them produces the error.

I've got
Windows 7
AMD Athlon X2 dual core @ 2.0 GHz
2 GB RAM
ATI Radeon X1270 with the latest driver
DirectX 11

And like I said, I used to play P64 all the time with zero issues... I've been looking all over for the solution. I've found a few threads around the Internet but none of them were ever resolved.

Oh yeah, I should have posted that too.

Direct3D Acceleration: Enabled

Notes:
No problems found.

And I'm pretty sure about having the latest drivers, I got them when I reformatted like a year ago and haven't changed anything like that since I last played N64.