After installing milkdrop you get error "Your hardware says that it supports [PSVersion=0x300], but it doesn't seem to do it properly - maybe yoru display driver is just buggy. You might want to try updating your display driver to the latest WHQL driver from the chipset manufacturer (Nvidia, ATI, etc.)"
Here is the fix that worked for me go to Control Panel\All Control Panel Items\Programs and Features once your in Programs and Features click Turn Windows features on or off look for Legacy Components and then open it up check both Legacy Components and DirectPlay, that should fix the error.
If you get black screen just play a song and that should start milkdrop
Hope this was helpful