Well as I said "DKII.exe -softwarefilter -32bitdisplay -32bittextures -enablebumpmapping -enablebumpluminance" as the commandline options and compatibility mode set to XP worked flawlessly for me in 1600x1200 on Win7 x64.
What's that?I got it! The "Threaded Optimization" option must also be turned to "Off" to make it work!