Your hardware is fine. Running myself on GTX260M in HD on my laptop. Follow the instructions below from the steam thread. That should get you into the game. There are some other bugs that havn't been fixed....
Most likely not related to hardware specs. There seem to be many bugs but for this one here is the solution set that i have tested myself and know works to get to gameplay. Obviously this only solved the issues i experienced.
*** Steam thread ** just added = http://forums.steampowered.com/forum....php?t=1440653
1. Incorrect or not updated drivers (graphics)
2. Some people have foreign language accents charaters in gamepath ex. accent e
3. Most common = suspect steam pack or installer does not install correctly or maybe corrupt from source. Reinstall C++ and DIrectX as administrator from steam applications.
4. Graphics & poor programming issues
Good luck, -=DocDire=-