Set Debug DirectX version in the DirectX control panel and see trace output to get the reason of this failure.
BTW, I had the same situation with my pixel shader and got help in GameDev.net DirectX forum. I remember that finally I converted the shader to lowest version using SDK conversion tool, and it worked without pixel shader. According to GPU provider, this behavior is according to DirectX specification.
Alex Farber
2010-09-20 09:29:06