Ok. This is one of those "Twilight Zone" issues. On my present PC, it works. The exact same CD running on the exact same OS on another motherboard acts just like it did with XP Home. Multiple installs can't seem to get it going properly. My guess is that it only runs properly on "certain" configurations.
This is the kind of problem that needs a few dozen testers with different hardware setups to troubleshoot.
I did get one error repeatedly, a weird block-of-memory error. It seems to do no real harm. Unless you're really low-on memory, I don't see it as a problem.
In any case, until (if/when) a solution can be found...I've noticed that it creates a config.qvm file in the main game directory (by the IGI.exe). If you want you can tell me what keys you want configured, I'll configure mine that way, then attach the config file here. I don't think it stores video settings there, but I can drop it to 640x480 to be on the safe side.