1. WHAT WAS DIDN'T WORKS for me:
Tried under WINXP SP2 and also had problems running the game under.
IF you start installing from CD#1 with SETUP95.EXE (under WinXP as i
tried my version) then you have the NOT ENOUGH FREE SPACE error mess.
So, set compatibility mode to WINDOWS 95 for SETUP95.EXE and start
installing. NEXT (when copies the DirectX files) time asked to overwrite
some DX files, may select YES for all (only some times of them).
When i want to start the game with SLAOVW.EXE then had black screens
etc. So i throw out from the task with Taskmanager, set compatibility mode to WINDOWS 95 and run SLAOVW.EXE again.
After that i had the REAL problem/error mess: CANNOT SETUP DIRECTX
when i click on OK then exit.
MY OPINION: the game may didn't works on WINXP WITH WINDOWS mode
starting!!!

2. The WORKING MODE (for me but i mean very useable for all members):
You NEED VDMSound INSTALLED for this!
Run INSTALL.EXE from CD#1 and install the game (DOS mode) to the
default folder C:\SPUD1
Right click on SPUD.BAT and select RUN WITH VDMS, then configure your
sound and play the game. WORKING fine under WINXP SP2!!

P.S.: my friend said he installed under WIN98 with DirectX 2 and the game
worked fine! Also said the game works under DosBox too!! I mean if you
have WinXP then try (simplest) my WORKING MODE.