It would probably work if you were using windows 98. Why can't you people learn that it's just not worth trying the game on winxp or win2k? If I was desperate enough to use windows xp or 2k as my dominant operating system, I would buy the playstation version and emulate.
Ok, enough ranting. Now it's time to get serious:
I would suspect any recent updates, Darkness. Think back to when it used to work, and then work from there. It probably isn't video settings since it doesn't work in software, but I wouldn't doubt that it is.