What Windows version you running? I'm running Windows 7, and this games runs fine on my computer without any problems. But, you might try running Steam and the Bully game's executable on a Windows account with Admin level privileges. You could also try running the Bully game's executable in a different Windows compatibility mode (Maybe try XP SP3 mode, right-click on the game's EXE file, Properties, and find the Combatibility options).

You can download and install DirectX from Microsoft from here:
http://www.microsoft.com/en-us/download/details.aspx?id=35

Good luck.

I had already re-installed DirectX, didn't work; I tried compatibility mode for XP sp3 just now, also didn't work. I run Windows 7.

Found this post on another forum:

http://www.sevenforums.com/gaming/108900-bully-scholarship-edition-windows-7-directx-9-installation-failed.html

Its a very silly error. The directX9 installation files are not complete. If you will go to your bully install folder, you will find a folder named "dx9" (or something related to directx9, in mine it was dx9 so I will explain using that, you make the necessary changes) there. Now this folder has a lot of files that are required to install directx9 on your PC. You obviously have a higher wersion of directx on your PC as you say, so you don't really need to install it, but the bully setup is so built that it will try to execute the directx setup before it begins installation. Evrytime it does this, it fails as the files are not complete and setup fails. The solution to this is as follows:

Download the "complete" directx9 package from here Download DirectX 9.0c (Jun 10) - FileHippo.com, http://www.filehippo.com/download_directx/ , OR just google directx9 and download from whatever site you like. Make sure it is directx9 that you download and not 10.
Name this folder "Directx9" without the quotes, and paste into the bully install folder.
Now cut the dx9 folder and paste it somewhere safe (just in case)
Rename the "Directx9" folder in the bully installation folder to "dx9"
Now run the setup.exe
Keep pressing "next" or "proceed" or whatever and after a certain point, you will get a "command line error". Just press OK, setup will continue and bully will be installed.
If this was successful, just delete the dx9 folder you saved in the safe place or else replace it and try a different strategy.
~~~~~~~~~~~

In your case, maybe replace the DirectX folder/files you download, replacing the folder at where Bully in installed on your computer; Example path may be like: C:\Steam\Steamapps\common\ Bully Scholatship Edition\DirectX

And within the DirectX folder run the "DXSetup.exe" file.

Well, good luck.

Yeah, that was the fix I mentioned in my first post. I tried it again just to be sure, installed a new DX9 from the link you gave me, still didn't do it. Thanks anyway, though.

I found an easy solution to this....i changed my audio format to 24Bits, 44100Hz (Studio Quality and it worked that way...:)

Oh hey, that does work! Thanks a lot!

how do you make this audio format change? I've been trying to get this game to work for too long, and i would really love to play this game.

Open your volume control and click the speaker icon to open your speaker properties, then go to the advanced tab. You should have a drop menu full of options. Choose the one mentioned above and click apply, then launch the game.

THANK YOU--I was about to throw my computer out the window because I couldn't get a 5+ yr old game to work properly.

Thank you so much.
EDIT: My game STILL gets stuck on the loading screen right after you get done talking to the principal for the first time. Any ideas?

That is an unrelated but well-known bug. The 1.2 update was supposed to fix it, so make sure you're running v1.2, it will tell you what version of the game you have on the title screen; I've seen some comments that Steam doesn't always update the game on the first install.

Also, I found this thread, some people figured out some fixes and detailed the steps they took. Might give them a try.

http://forums.steampowered.com/forums/showthread.php?t=1242797

Originally posted by Capt. Murica:

Open your volume control and click the speaker icon to open your speaker properties, then go to the advanced tab. You should have a drop menu full of options. Choose the one mentioned above and click apply, then launch the game.

So...how do I do that in an Windows XP ?

I haven't used XP in a long time, but I think you should be able to do it from the Control Panel.

Control Panel > Sound > Select your sound card > Properties > Advanced > Select a bit rate

Keep in mind that you'll need a sound card that supports the 24bit format, if you're using an older PC or a laptop. Good luck.

I'm done with this game. I tried the first solution on this, didn't work. The second one, didn't work. Updating drivers, didn't work.

same dude. this game just doesn't work. shame