Hay All you A M Alice Fans!!!
Ive worked out how to get Alice to run under win XP (cant help with health bar issue sorry:(
Heres what to do, quite simple really, Crack it
The game seems to fail to check the disk properly under windows XP and crashes, so the no CD crack for alice, (I shall not tell you where to get it as its technically illegal although if you own an original copy there is no real problem (Clue) look on google ) is the way to solve this. Once you write the cracked EXE over the original in the alice folder the game should run fine, plus you have the added advantage of not needing to put your alice CD in and risk scratching it
Hope that helps