Basically sound pops and stutters a lot. Running on XP. Just got this and installed Greyface's patch over top of it. A cursory search indicates that turning off Compatibility Mode fixed a similar issues with Might and Magic 7; however mm8.exe is permanently stuck in Compatibility Mode for Windows 95.

Or, is there some other fix I should be considering?

Hmm, odd, the Greyface 1.5 patch fixed it for me I think. Make sure accelerated 3D audio is disabled I guess.

http://sites.google.com/site/sergroj/mm#TOC-GrayFace-MM8-Patch-v1.5

This should be it.

I can't even enable 3D Audio in the first place. Also 1.5 is what I was using.

Also it only seems to happen with PlayMP3 on. I turned it off and sound worked fine. Then I put in some other music CD* and it played THAT fine and the sound also worked.

* Palace Music - Viva Last Blues