Well, I checked out the demo....it's WAAAYY too short for a 400+meg download. It looks nice and ran perfect, but it's over in like 10 minutes. I think all the meggage was for the sound and movies. While the game looks like a must-buy for me, the demo was disappointing because it was so short. Uninstalling and deleting.....
I didn't encounter any real problems running it (after I sorted that monitor INF stuff....but that's a whole 'nother story

) It didn't ask for any disks, no artifacts and it didn't 'scrunch' anything. I'm still using the Cat 3.5 hotfix drivers, they have been rock-solid for me. But I didn't attempt to use any AA either. (BTW, I read over at R3D that the texture problems with the 3.8's and R200 based cards have been fixed in the upcoming 3.9's

Kudos to ATI for that! )
If you look in the Start menu, there is a config option to set the controls and resolutions and such.....just in case y'all didn't know that.
In fact, the ONLY thing that could have been considered a problem was when I tried to set the texture res (not game res) to 2048x2048. It wouldn't render the backgrounds in the various menu's. Stepping it down one notch fixed it right up. But that was the length and extent of any problems I had with it....other than being too short, that is.
I'd say that the demo is not really worth the download unless you just HAVE to see it, and then you'll be disappointed by it's brevity.