Not exactly sure why it's not running, but my first thing to try would be right click it, then click the compatability tab and click "Run this program in compatability mode for:" and since you're saying it run's fine on Windows XP, I'd select either Windows XP SP2 or Windows XP SP3.
Yep I can cofirm setting the compatability tab works. I couldn't get the installer to work but then I set the compatability to Windows XP SP3 and it installed and is running now.