I finally found my answer to this problem (which I think is the same as yours). The answer I found was:
"Usually it has something to do with the old Java libraries used by the game (remember it was out in 2000, before Windows XP). Try looking up an old version of javai.dll library through Google and overwrite the old version in jre\bin folder inside the game's folder with it. That helped me run the game a few years ago even without any compatibility settings (one other guy confirmed he was good with it, too, I think).
Surprisingly, it runs well without that trick on my present computer... Maybe it's because the current version of Java Runtime Environment is installed - try grabbing it at http://java.com/. Hope all this helps."
Personally, I did the following:
1. Downloaded javai.dll from: http://www.down-dll.com/index.html?frameA=dll/j/javai.dll (though I'm sure there are a hundred other sites one could use).
2. Unzipped the javai.dll file into the Redstorm directory.
It worked. (I also ran the program in compatibility mode- and made the SW.exe file that is created read-only. Though I'm not sure if either of those steps were necessary. What I know for sure is that javai.dll was a necessary part of the solution. Thank you for those who list solutions to these type of things. I've never done anything of the kind, but I thought I would add this to sort of 'pay it back' so to speak. Thanks.
