Well patton610, tell us a bit about your computer and where you installed the game. ie: "I've got a Windows 7 32-bit OS running on an old AMD Thunderbird board with 2 gig of ram, and an nVidia 6200 AGP graphics card. I've got Steam installed in C:\Program Files, but the SH4 games are in a separate "Library Folder" on the 2nd hard drive" - Also tell us whether or not you had emptied your Save folder, and if you have a 64-bit OS, if you activated LAA successfully on the SH4.exe file.
I mention a computer like that, because I've got one with specs like that, and the mod doesn't run very well on it. It does run, but I have to stay at the periscope or NavMap etc., the 2D stations, in order to be able to play. On a Win7 64-bit machine with a CoreDuo quad, 8 gig of ram and an nVidia 560, it does excellent.