Right after downloading I installed Citizen without problems (some other games I had installed in the past on GOG never get past this point for some reason) and then ran the game. Perfectly fine, except the blank prompt asking for a "Yes" or "cancel without any real prompt to tell me what exactly i'm doing.

So, after some searching around I came to this thread. http://www.gog.com/en/forum/giants_citizen_kabuto/compatibility_with_newer_hardware

It then led me to another forum allowing me to download 4 parts and replace them with the game's files. I did so and suddenly the game worked fine, the first cutscene was amusing and went without a hitch, then when it got right into gameplay, the sound/music crashed into static. I tried to continue play and it got better, though the static sound came back at random times, including certain cutscenes.

I later then downloaded "Giant's Hook" to see if it modified the files somehow to be rendered listenable, but alas it must have removed the earlier mod and now I get the boot up prompt again, only this time it's readable asking for the CD.

Could you post your system specs and OS please?

I run on WinXP though I can't find where I could find my sound card info exactly.

The rest of the game runs fine as far as I could tell. The random static sometimes seem like it comes from the Reavers, I guess maybe an audio cue maybe?

Hmm if you on XP have you tried messing with the sound hardware acceleration? You can get to it by going the start menu, clicking run and typing in dxdiag. Once that loads just to to the sound tab and change the sound hardware acceleration slider. Try the different settings on it and see if any of them help.

Well, SB Live! Wave Device, and it's at Full Acceleration.

Though really I think it is something in the game, I did try firing the Mecc standard weapon during the static, and you can faintly hear the sound over the static. You can also hear voices if you listen hard enough, though the funny is lost over the sound of your ears bleeding.

I also tried adjusting the sound/music in game, placing both at minimal did not change a thing.

Well you should try lowering it see if it helps or not. Sometimes it does with older games. Also if your using a 5.1 or 7.1 surround sound system you could try setting it to stereo with the windows settings and see if it clears the sound issues up.

Doesn't work >.< if anything it adds a light static sound whenever the loud static isn't in effect.