Neil said earlier it does work with 64bit.
Question: are you storing the dreams in C:/Program Data/Stardock/DeskScapes/Dreams, or in C:/Windows/Web/Windows DreamScene?
I started by storing them in the latter by mistake and kept having problems with DreamScene failing to run. Storing them in Program Data worked much better.
Your drivers should not be an issue, it's a program problem rather than poor graphics. Unfortunately I've not been using DeskScapes long enough to be of much practical help It would be good if we could get someone from Stardock to lend a hand.
Oh... must read more carefully
I think you need to get in touch with support, something not quite Chippewa here