Try changing the graphics to windowed.
Main Menu => Preferences => Graphic Setting => Graphic Options => Then under Graphics, click on: Windowed I have noticed that some of the modern OS's can not deal with Direct Draw very well. If the game works in Windowed Mode, you should be able to add a Glide Wrapper and play the game in Full Screen with Glide checked instead.
For Glide Wrappers and what Glide i is, here is what I said about them in another post, along with where I have some hosted:
Glide graphics were a style/type/process of Graphics that were created by the Voodoo graphic cards. The company, 3Dfx that built them went out of banrupt and was bought out by Nividia in 2001. The Glide wrappers are little programs that allow you to create that style/type/process of graphics with today's graphic cards.
The Glide wrappers that are out there are dll files (dynamic link libraries) that for RedBaron 3D just put in the game folder. There are two main types with a number of versions. One type is called DGVooDoo and the other is known as OpenGlide. There are other types but I have never used them. OpenGlide worked best with my WinXP machine while DGVoodoo 1.4 works best with my Win7 machine.
I have posted 4 Glide wrappers here:
https://skydrive.live.com/redir?resid=E196374A237958B4!248 Place them in the game folder. You may need to experiment to find the one that works for you. For Open Glide read the read me as you need to configure the ini file to you computer.
Read this for the DGVoodoo 1.4 and 1.5 tweaks if needed:
http://web.archive.org/web/20080531114428/http://www.polovski.com/FAQ/dgvoodoo.htm