As I expected: the log simply shows KDFW has been loaded successfully, and everything is working fine...the problem must be somewhere else.
You can activate the Simconnect diagnostic mode, this way:
Open notepad, and copy the following text:
[SimConnect]
level=verbose
console=1
RedirectStdOutToConsole=1
OutputDebugString=1
file=c:\simconnect%03u.log
file_next_index=0
file_max_index=9
Save the file as SIMCONNECT.INI in this folder:
Documents And Settings\YOUR LOGIN NAME\Documents\Microsoft Flight Simulator X Files
At the next FSX launch, you should see a text window with diagnostic message. Go to KDFW, let the sim run for 10-20 seconds, then exit.
You should see a file named simconnect000.log in your C:\ drive. Zip it and send it to me via email. It's obvious your problems is very specific to your system so, there's no need to continue here, we'll sort it out via email.