Two initial thoughts, try installing and running in Win95 compatability mode under XP. So, you will have to set the properties for the SETUP.EXE and GAME.EXE (whatever the real filenames are).
Your other option is to install Microsoft's Virtual PC 2007 on your XP system. Then, create a Win95 virtual machine by installing Win95 and run it that way.
Here is an illustration of the latter approach with CAOD running on a Win98SE VM under MS VPC 2007 installed to Windows XP Pro SP2.
Good luck!
