I tried the demo and it is a beautiful game. Wow that's just impressive.
It worked fine until I tried to go full screen. I'm not sure it's just your game that does that though because there's a couple of games that won't run that appear to be full screen but I can't be sure. Just for info my screen res is 1024X 768 and my max resolution is 2048x1536. I'm not sure if it's because my resolution is too low or the widescreen aspect, but something's not working. Again I encountered this error with a few other games as well, so it could just be something with my card.
A thought for the windows controls would be to allow the screen to move with the arrows so you could focus on moving the terrain. Moving the camera while trying to raise terrain means you loose focus on the game.
But dude that game rocks and puts me to shame.