I'm absolutely puzzled by this phenomenon.
If anyone has any ideas to how to fix this problem please let me know, if you mention a particular solution that I have already tried, I will reply saying 'I have tried said solution and still it failed'. I tried updating my drives too, but to no avail I achieved the same result. It was working fine until a few weeks ago it started giving me this message repeatedly. Using Shader model 3.0 code path because it is the best available path on this hardware.
Apparently every strategy that I've found in many many websites, are simply not working, No matter what I do that's suggestive to the problem, I Keep getting the same Error, But it seems to only happen when its attempting to Create A Direct3D Device as you can see below.