I have the same issue when I open my mod tools. It says Getting Direct3D 9 interface...
Using Direct3D9Ex interface
Pixel shader version is 3.0
Vertex shader version is 3.0
Shader model 2.0 code path is available.
Shader model 3.0 code path is available.
Using Shader model 3.0 code path because it is the best available path on this hardware.
Creating Direct3D device...
Couldn't create a Direct3D device: An invalid parameter was passed to the returning function

Using UGX Script placer gives fx limit error. 2 fixes are

1. comment out unused fx from script using //
2. install the fx limit dll that bypasses the limit