The answer people have got from steam is to take it up with Aspyr, who in turn in my case of running windows 7 said that 7 doesn't support it, though some have got it to work, and it doesn't explain why it is not working on my mates XP system with the same problem. We have both tried the various driver's (though that is a silly solution I found on the steam forum, as reverting back to x.60 driver's breaks more recent game's, and didn't work anyway)
We both get a black screen and crash to desktop, so the issue seem's the same. I looked on the Steam forum's and it seems to be a very common issue, but I thought I'd post here as I know at least here I'd get some actual advice and help rather than the 'You should have read this' 'Your a moron for buying the game' type comment's.
We both have a Nvidia GTX 460 card, and obviously over the min/rec requirements to run the game. I run Windows 7 64bit, he runs Windows XP(sp3) 32bit. A friend and myself both bought Stubbs the Zombie in the steam sale.