Copy d3drm.dll to windows/system and windows/system32. Make sure you have directX 9 and the latest video drivers.

Personally and as an IT instructor: Use XP 32 unless you absolutely need Vista, Win7 or any 64 bit system including XP64.
Unless you have programs that are made for 64 bit there is nothing gained with a 64 bit system, in fact it may run 32 bit programs slower (if at all). I have had XP64 as well as Vista and Win7 in both 32 and 64 versions. They are (IMPO) garbage. Half of my software and hardware doesn't work at all on them. I am not going to upgrade computers, peripherals and software for the 40 computers in my lab just to say I am running the newest garbage from MS. There is nothing wrong with XP, that is why MS is going crazy trying to push Win7. Vista was so bad the corporate world refused to switch and they are expecting Win7 to be just as bad. So far they are right.