Running legacy games can be a challenge. Be sure the game is not installed anywhere under
Program Files or
Program Files(x86). Protected directories can interfere a lot of strange ways with games -- especially with legacy titles that were built for prior versions of Windows.
If you're using a mouse with 3rd-party drivers (Saitek, Razer, Logitech, etc.) you may need to deactivate/uninstall those and use the mouse through UPnP.
Try switching the compatibility modes for the .EXE. I'd guess that either Windows XP (SP2) or Windows 7 would be the optimal choices, but it's possible that other settings might work better for you. Try setting things like this: