Dec 8, 2016 - Rockstar's 'Bully' was originally released in 2006 for the PlayStation 2, centered around 15 year-old Jimmy Hopkins as he tries to rise through the ranks of the corrupt Bullworth Academy prep school. It generally received good reviews, and two years later, the Scholarship Edition.
Tried verifying the game's installations? Steam-Client, Library, right-click on Bully, Properties, Local Files, Verify integrity of game cache. Were you using a 'Frame Limiter Unlock' with this? If so, temporarily put things back to normal and see if you can get past that part. Tried adjusting some of the graphics options yet to see if that makes a difference? Are your graphic and sound drivers up-to-date? What's your computer's specs and Windows version?
Tried setting the game to run in an XP SP3 Mode yet? Graphic and sound drivers are up to date. Navigate to where your Bully game is installed, example path could be something like: C: Program File (x86) Steam steamapps common Bully Scholarship Edition Find and right-click on the file named: Bully.exe On the Windows pop-up select Properties. On the Properties window, go to the Compatibilty tab, check the box for 'Run this program in compatibility mode for:' and from the drop-down menu choose 'Windows XP Service Pack 3'.
Alternatively, fom this Properties tab you could also try enabling the 'Run this program as an Administrator' option. You could also alternatively try cehcking the options for 'Disable Visual Themes' and 'Disable Desktop Composistion'. Check finishing your changes, click 'Apply' and 'Ok' buttons, then try your game. Also, you could try having the Steam-client to run with Administrator level privileges too and see if that makes any difference. Tried verifying the game's installations? Steam-Client, Library, right-click on Bully, Properties, Local Files, Verify integrity of game cache.
Tried downloading and installing the DirectX 9.0c from MicroSoft yet? After installing you might want to restart your computer too. Some computers (laptops moreso) just aren't so good as running some games though, so in the end it could just be that your computer isn't able to run it properly. Anyways, good luck. Have your Windows, Graphic and Sound drivers up-to-date.
Close any other unneccesary programs you may have running in the background before launching the game. PS: Here's a couple of threads with some other possible 'fixes' and here.