OK, a few suggestions...

1. Update the Video Drivers: '08 was AGES ago in video-driver years. I bet that's what is at fault, but if not...

2. Try Turning off your SoundFX and all Music Options: Some people in XP are seeing this fix their crashing.

3. Bring down the Resolution: We'll need to find the root issue, but try bringing down your res to something less....insane   Mostly with those old drivers, I can see this setup dying pretty easilly.

Let me know how that works...again, my guess is #1 will fix most of the problems, but any that remain we can work with you to resolve.

Ok, Im updated the drivers and it made no difference, at least initially, nor did turning off the sound.

Then I tried turning off full screen mode.

The initial menu came up but with no text in the boxes. A second start was the same. When I navigated through game creation using the defaults, the game started.

A full screen still did not start however. I tried HW cursor with the same result.

I then tried hardware cursor and full screen and it came up. Turning off hw cursor and turning sound back on and still coming up. 

So, I'm not sure specifically what changes flushed things out, but I am now working in full screen mode. Non full screen mode still lacks any text.

Would you like any additional files or data?

tom