quote:

First of all,
DO NOT ATTEMPT TO ROLLBACK OR UNINSTALL YOUR DIRECTX.
IT JUST DOESN'T WORK THAT WAY.
Reverting back to previous versions of DirectX, I assure you,
will not solve the problem
but will just mess up your Operating System.

Secondly,
BEFORE RESORTING TO GIVING UP YOUR CURRENT GRAPHIC CARDS
AND BUYING NEW ONES,
try this possible solution first.

THE ONLY REASON WHY THE ERROR MESSAGE
"..Unable to intialize DirectX..."
APPEARS IN WARCRAFT IS THAT
DIRECT3D ACCELERATION IS DISABLED
(even if your graphics card is direct3d-capable)
or IS JUST SIMPLY NOT SUPPORTED BY YOUR GRAPHICS CARD.

To know if it's disabled,
type dxdiag in the run command.
Go to Display tab.
Check DirectDraw and Direct3d acceleration.
Status of these two must be "Enabled" and is clickable.
If it's not, then your Direct3d is indeed disabled,
which prohibits warcraft from running.

SO THE QUESTION NOW IS, HOW DO YOU ENABLE DIRECT3D? Simple.
Just go to Display Properties (from the Control Panel),
then click Settings tab,
and then click Advanced button.
Look for the tab where "Hardware acceleration" is present
(in most cases, it's in the Troubleshoot tab).
Drag the indicator to Full.
Click Apply and OK.

Just to be safe, restart your PC again.
Run Warcraft.