Here's something you can try, I know it works with Windows 2000, have yet to try it on XP but I think it should work(I got this from another site, Warlorders.com I believe). Search your PC for slayerui.dll. It should be in your Systems folder if you have the latest patches. If its not on your PC, search for it on google and download it. Then go into your the command prompt (cmd at the run prompt or its under accessories) and register it as follows.
Open a MS-DOS prompt (aka: Command Prompt) session
type in "regsvr32 %systempath%\slayerui.dll" (without the quotes) where
...%systempath% = the ENTIRE path to your SYSTEM32 directory, usually "C:\WINNT\SYSTEM32" (I think it might be C:\Windows\ in XP)
After that right click on the shortcut icon for chaos gate (or any shortcut icon) and you'll see a tab that says compatibility. Go to the tab, check the box that says use compatibility mode and then either pick Windows 95 or 98, I've had more luck with 95 so far. The game is rather buggy though. Hope that helps!