Hey, that's a decent setup. My machine's fairly close to that, although I cut a few corners for now. I have Windows 7 x64, Intel i5 750, 4 GB of RAM, NVIDIA GTS250, and a single 1440x900 monitor (I should really hook up my Samsung LCD HDTV to this too so I can dual-mon it up).

Anyways, this would be a problem specific to fullscreen mode only. The issue is that Verge used to (until fairly recently) try to switch to a fullscreen mode using the exact resolution settings in verge.cfg. As a consequence, if your video card or monitor didn't support 320x240 resolution and the game required it, it'd cause a screwed up video mode to be created where the top-left is a 1x zoom square, and everything else is strobing black.

This has been fixed since, by not using hardware fullscreen (which doesn't give any advantage really when all the drawing in Verge is in software anyways). This exe uses fake fullscreen which works a lot better on modern machines, and has a few different scaling modes for the fullscreen and windowed views: http://bananattack.com/stuff/verge/r435/verge.exe

You can read more about the changes here.

I fixed the fullscreen thing once I upgraded computers and the new video card's drivers couldn't support non-native monitor res anymore, which I imagine has to applied like 99% of people since the mid-2000s. Hopefully that new exe works out.