I'm having a similar issue to this.
What I did find out is that repeatedly running elemental will eventually get it to start. And once it does start it works perfectly fine - if the splash screen with the dragon shows, the game will run for several hrs with no issues, and haven't gotten any crashes.
Deleting the folder seemed to work once for me, but as with songriever deleting it a second time and trying again went back to the black screen.
edit: for what its worth, according to the taskmanager, elemental will start using about 135 mb of memory, and then just stop doing anything.