Try this:
The issue I had at the start was that the game would state "DirectDraw error"...Running in compatibility mode did not fix this, running as admin did not fix this--nothing worked.
It turns out that in Windows 7, the DirectDraw freaks out a bit, and some great people figured out the cure.
You can read about other tech issues here at these forums:
http://swgb.heavengames.com/cgi-bin/forums/index.cgi But the solution is actually here on the Age of Kings Heaven website--a program you can DL, then target your Galaxy folder, then *poof*, you've got a fixed DirectDraw error and can play the game. It's wonderful.
http://aok.heavengames.com/blacksmith/showfile.php?fileid=11108 Love this, love this...nostalgia fix taken care of. Hope this helps!