Compatability mode isn't garunteed to work. Sometimes when I play old games I still have to whip out Virtual Machine and load up a real copy of Win98. You can find VM on Microsoft's site*; you may need to torrent a copy of Win95/98/98SE/Me if you don't have a disc handy.
* MVM only works on XP Professional, Vista Ultimate, and Server editions. M$ gives a big "SCREW YOU" if you're running Vista Home Basic or Vista Home Premium.