1. Uninstall Red Alert 1 if previously installed.
2. Insert a Red Alert CD into your CD-ROM drive. When the autoplay menu appears, choose "Explore CD."
3. Find "Setup.exe," right-click, and choose "Properties." Click on the Compatibility mode tab and set the compatibility to Windows 95.
4. Install Red Alert as you would normally, but do not reboot when it prompts you to.
5. Open up My Computer and navigate to your Red Alert directory (usually C:\Westwood\REDALERT).
6. Right-click on a blank area in the folder, and "Sort by file type."
7. Change the compatibility mode on all of the executable files (about 7-8) to Windows 95.
8. Extract "Thipx32.dll" contained in the zip file to that is avalible here http://www.cncnz.com/file.cgi?http://downloads.cncnz.com/redalert/patches/RAXPFIX.zip
9. Boot up Red Alert and have fun
Note: I believe this disables LAN play. Install patch 3.03 to regain some lan options
This program automates the above process
http://ra.afraid.org:90/archive/utilities/red-alert_manager_0.98.exe