I'm also new to this forum and this thread was exactly what i was looking for.
I'm having a similar problem here as i am also running Windows XP 64-bit. I got a bit further then the installer issue, hope this might help you a bit:
I also copied the contents over from the cd onto my computer, however the game wouldn't launch, so i figured its probably some registry keys missing. So to be sure i installed the game on a 32-bit system, exported the registry keys and imported them here.
I can play the game now (in windows 2000 compatibility mode) with numerous crashes, but worst of all I am unable to save or load, doing so will crash the game and return me to the desktop, sofar i'm not looking forward doing the entire game with a quicksave/quickload
Its a shame it doesn't work anymore, i really like this game and i've finished the game at least twice on Windows 2000/XP 32-bit without any crashes or problems. Oh well guess i'll go back to Fate of Atlantis for now
i'm open for any suggestions here though.