I have similar problems, but I'm running it on winxp. I downloaded the game through steam, but I don't think that's the problem. I click on the game through steam to start up the game and I get a white screen with the "encountered a problem/report a error box" and that's as far as I can get.
I know it's a older game, but there must be some kind of a fix to this problem. I really don't want to downgrade my computer to play a 7 year old game, but I just remember it being pretty fun.