Yea I know the original asker is probably never going to come back and check this but I am posting the solution for everyone else that comes here trying to find it (like I did =P).
1- Open the starshatter folder, for me in windows xp it is C:\Matrix Games\Starshatter Demo (I only own the demo)
2- Right click on Video.cfg
3- Click open
4- Select "Select the program from a list"
5- Use Notepad, or Wordpad, or really any text editing program should work
6- You should see something like this, or anything resembling it really (my numbers were originally 1280x800x32, respectively)
7- Go on and change the numbers around, I used 800x600x32 but try any numbers from this post that you like http://www.matrixgames.com/forums/tm.asp?m=2125397
Thanks to GM for the resolution tables btw ^.^
If the numbers you selected don't work just go back and try to play with it until it does, I think the problem is as GM says, it gives you the hard coded options not what will work on your system... but I don't know to much about it.
As an update... after you have started the game, you can apparently set the video options using the in game options to whatever resolution you like without a crash... I have absolutely no reason why this is but whatever, least it works =D
< Message edited by Desertcyclone -- 11/24/2009 6:51:14 PM >