I have run this game without problem in Windows XP's NTVDM. It is a DOS game, not a Windows game, first, so this is getting moved to the correct place.
Are you running the game by right-clicking and choosing "Run with VDMS" rather than double-clicking on it? That's important.

I'm using right click and run with VDMS of course. But it won't work.

EDIT: nevermind, I didn't know I had to use VDMS for the sound setup too.

I haven't been able to get this game working in XP using VDMSound. Are there any options in VDMSound that need to be checked (beyond the default ones and maybe MSCDEX)?

When I run the normal.bat file with VDMS, it goes through a registration process and when that's done it just sits there. If I try to run the Norm.exe with VDMS it just sits there. No error messages or anything but nothing happens. I've set the sound options correctly. Does it need a VESA driver or something?

I've tried it in DOSbox and it loads fine, but it's just not playable like CrimsonStar said

Never mind, I got it working.

For some reason, when the Logo.exe file was in the installation directory the game wouldn't start. If I delete it, it works fine.