This game indeed works in XP, but you have to do 3 things -

1) run mm7setup to disable 3D sound.
2) start -> Run -> DXdiag under DX set sound acceleration to NONE.
3) make a shortcut to mm7.exe and set Compability mode to Win98\ME.
4) run the game through the shortcut< and enjoy this great game ! :)

I recently purchased MM IV. At installing the game i get a problem. At 59 % it freezes and i get the message: "error during the move data process:-106". it has something to do with the program component "mightdod.vid".