This time the log does not show anything wrong. Well, from what I can see this is definitely a graphics card issue somehow.
Check Problem C here:
http://www.frictionalgames.com/forum/thread-3754.html
If that doesn't work we can try to clean your drivers and completely reinstall them, that works sometimes. Your graphics card is great, I don't know why that happens:
1) Download
Driver Sweeper and install it. Do not run it yet.
2) Uninstall the NVIDIA drivers and all of their components.
3) Now run Driver Sweeper. Select all NVIDIA, PHYSIX, ATI, AMD traces and delete them all.
4) Reboot your system and then download this(280.26 WHQL, do not use the latest beta or something else - this should be fine):
http://www.nvidia.com/object/win7-winvis...river.html
5) After installation reboot your system again. Make sure that in device manager your NVIDIA card appears and try launching the game again.