I had a similar but more dire situation with one of my old games. I plunked down good money for GTA Vice City back in the day. But a couple months ago I tried installing it on my Windows 7 system. It installed fine with no warnings from Windows. But when I tried playing and got past the menus, there was no response from the mouse. After a couple hours of research, finding nothing but a few message boards where people described the issues but nobody helped, I decided to give up and went to Steam.
After $9.99 and a quick install, I had the game working perfectly. Sure, I was pissed that I had to pay again for such an old game, but it just worked.
I've come to the conclusion that I'll probably only buy computer games on Steam from now on.
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Matt