It's sounds like a video codec issue. You can install the necessary codec off the Install Disc by putting it in the drive, and selecting "Install DirectShow" from the Autorun menu that pops up.
The 1.02 patch (aka the TNT patch) will work with both ATi and nVidia cards. It's really been misnamed, because it deals more with simply removing the 8-bit paletted texture requirement than adding nVidia-specific code.
At that point, if it still doesn't work, try using different compatibility modes (right-click on icon > select Properties > choose a compatibility mode from the compatibility tab) and see if that clears up the problem.
