A few questions:
1-when you go into the mappoint option in the menu, does it show only the controls or does it show the black background with gree numbers on top ?
2-RRConfig may no be loading the setting right .. as long as your RR.INI has mappointmap=2 it should try to use mappoint Europe. what is in yout RR.INI ?
3-What mappoint version do you have ? 2004, 2002 ?
4-Do a search on your machine and make sure you have a file called MappointControl.ocx in your system. If not, I urge you to try re-installing.
Lastly, make sure it's Mappoint you have and not Street&Trips -- because although they're almost the same thing, the last one will only run as an external app.