Well, I've actually found it doesn't, in my case anyway, and a number of XP users are reporting freezes (making it impossible to play for more than about 10 minutes). The game doesn't crash, but all the units stop responding. The developers are making this their highest priority for patching, which is good.
I've been able to play it OK on my Vista laptop, but it's not a very powerful machine so FPS is low. It's a nice sim IMHO, the interface definitely grows on you. The biggest problem however is inability to save in game, I've tended not to play it simply because I rarely have the time meeded to finish one scenario.
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