Stonersmurf, this problem I do know how to fix.
First of all check to make sure that your video card is at least the minimum requirement. If it is, then do the following.
1. Start the game. When you hear the music starting, a prefs file has been written and you can edit it (in Notepad for example).
2. To find this, you must go to control panel -> folder options -> view -> turn on see hidden files and folders.
3. It is found at the following location on your PC
XP: C:\Documents and Settings\UserName\Local Settings\Application Data\Funcom\Conan
4. Edit the line called < Value name="RenderSetting_ShaderModel" value="1" />
5. It should read <Value name="RenderSetting_ShaderModel" value="0" /> (NOTE: NO spaces between "<" and "Value").
6. Launch Age of Conan.
That's what the support site says, if that doesn't work I don't know what then XD All I know is that this game is still buggy, and they're still working out the kinks. I sent an email for help from them three days ago and still haven't got a response.