Just found my copy of this game and it actually works with modern hardware in D3D mode
There's a few niggles though!
1.The screen resolution: if you run in 1600x1200 then the Journal box is just a tad too small for comfortable reading.
2. Exiting the game causes a SmartHeap Library: Application Error even in compatbility modes, but it's nothing major!
3. If you exit the game launcher you get a MEM_BAD_POINTER error!
4. On the main menus sometimes the BACK and EXIT text flicker!
But the actual game itself looks perfectly playable!