Hey hey. I just installed this today, but wasn't able to get it to run on XP either.
On another site, I read that the DOS installer should be used. This is in ..\SETUP\SETUP.EXE
Install using that, rather than ..\SETUP95\SETUP.EXE
Avoid autorun and just browse your way through.
For my computer with a SoundBlaster card, I selected the plain-jane SoundBlaster driver. For my other computer (on-board sound) I also used the generic SoundBlaster driver. The sound test for both was very choppy, but proved to be irrelevant in the end.
Install the 1.08 patch, which you know how to do.
I didn't try without, but with 95-compatibility everything functioned normally--don't let the sound test or initial loading of the game fool you.
