I have not installed the game through Steam but removing the working folder in your user's Application Data folder you can start with a fresh install. Just try and remove this folder that contains your profile data:
%APPDATA%\Crayon Physics Deluxe\
Well that didn't work, but thanks for the attempt it was appreciated.
Also if it helps I took a look at the log file today(didn't even know there was one) and this is what it said:
( ) --------------------------------------------------------------
( ) New log created on Thu,Apr 09,11:27 AM
( ) Using Ceng version 0.3.0
( ) Build in Unknown compiler at Jan 15 2009 14:35:02
( ) --------------------------------------------------------------
( ) Registered test: CSingletonTest
( ) Registered test: CStaticSingletonTest
( ) Registered test: StringTest
( ) Registered test: CArray2DTest
( ) Registered test: CMapHelperTest
( ) Registered test: CMapHelperSortedTest
( ) Registered test: CAnyContainerTest
( ) Registered test: CWeightedVectorTest
( ) Registered test: CStaticArrayTester
( ) Registered test: CTimerTest
( ) Registered test: CColorTest
( ) Registered test: CProfilerTest
( ) Registered test: CXmlTest
( ) Registered test: CSmartPtrTest
( ) Registered test: CCalculatorTest
( ) Registered test: CInfixToPostfixTest
( ) Registered test: CPostfixTest
( ) Registered test: CPostfixAndInfixToPostfix
( ) Registered test: CPostfixSinCosinTest
( ) Registered test: CSSObjectTest
( ) Registered test: CSSObjectSerializeTest
( ) Registered test: SignalSlotTest
( ) Registered test: RandomTest
( ) Registered test: CAveragerTest
( ) Registered test: CStatisticsHelperTest
( ) Registered test: CVector2Test
( ) Registered test: CMathUtilsTest
( ) Registered test: CMathFunctionsTest
( ) Registered test: IsPointInsidePolygonTest
( ) Registered test: CFakeThreadTest
( ) Registered test: CTextSpriteTest
( ) Registered test: CTextureManagerTest
(!) Gfx::LoadImage() - no GFXFactory given, cannot create graphics surface.
(!) Gfx::LoadImage() - no GFXFactory given, cannot create graphics surface.
(!) Gfx::LoadImage() - no GFXFactory given, cannot create graphics surface.
(!) Gfx::LoadImage() - no GFXFactory given, cannot create graphics surface.
( ) Registered test: CWidgetTest
( ) Initializing video [OK]
( )
( ) Creating new window
( ) Compiled with SDL version: 1.2.11
( ) Running with SDL version: 1.2.11
( ) Using driver: windib
( ) Using anyformat ( SDL_ANYFORMAT )
( ) Valid resolutions for current flags
( ) All resolutions available
( ) New window created succesfully
( )
<!> Error the screen mode is not available
<!> Resolution: 800, 600 @ 0
<!> Flags: 268435456
( ) Initializing audio [OK]
( ) Initializing mixer API
( ) Compiled with SDL_mixer version: 1.2.6
( ) Running with SDL_mixer version: 1.2.6
( ) Opening audio device with frequency: 22050Hz, format: S16LSB, channels: 2, chunksize: 2048 [OK]
( ) Audio device opened 1 times with parameters frequency: 22050Hz, format: S16LSB, channels: 2
( ) Using audiodriver: dsound
( ) Number of audio channels allocated 8
( ) Mixer API initialized succesfully
( )
( ) Creating Direct3D device
( ) Creating Direct3D device [OK]
( ) Can't load solution: D:/DOCUME~1/GUMMIK~1/MYDOCU~1/Crayon Physics Deluxe/My Solutions/Apple Tree - 090109-0959.xml, because it's of too old verion
<!> Couldn't load image (data/gfx/crayon_brush_01.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/crayon_brush_02.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/ui/ainmenu_text_background.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/ui/ainmenu_text_background.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/ui/ainmenu_text_background.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/ui/ainmenu_text_background.png), because D3DXGetImageInfoFromFile failed.
<!> Couldn't load image (data/gfx/ui/ainmenu_text_background.png), because D3DXGetImageInfoFromFile failed.
<!> Error the screen mode is not available
<!> Resolution: 1024, 768 @ 0
<!> Flags: 268435456
( ) Recreating Direct3D device
( ) Direct3D device reset [OK]
<!> Could not load effect-file data/sfx/hit_001.wav
<!> SDL_Mixer says: Mix_LoadWAV_RW with NULL src
<!> CTextureManager unreleased garbage!
<!> data/gfx/crayon_brush_03.png 1, 1
<!> data/gfx/crayon_brush_04.png 1, 1
<!> data/gfx/crayon_brush_05.png 1, 1
<!> data/gfx/crayon_brush_06.png 1, 1
<!> data/gfx/title_fader_00.png 1, 1
<!> data/gfx/title_fader_01.png 1, 1
<!> data/gfx/title_fader_02.png 1, 1
<!> data/gfx/title_fader_03.png 1, 1
<!> data/gfx/title_fader_04.png 1, 1
<!> data/gfx/title_fader_05.png 1, 1
<!> data/gfx/title_fader_06.png 1, 1
<!> data/gfx/title_fader_07.png 1, 1
( ) GfxShutDown complete
Edit: Nevermind I reinstalled Direct X 9.0c and that seemed to worked but I ended up having to apply the D3D fix since I ended up with missing graphics for some odd reason.