The game is working fine for me, except for the FMVs. I just get a picture, but no animation. I already tried fiddling with the preferences.ini and running it in several compatibity modes, but no succes.
I have Windows 7 Home Premium, so no access to XP-mode.
Any help is appreciated :)

If you are having FMV issues with windows 7 64 bit and compatibility tweaks haven't work try changing your power options. Click the little battery icon and select high performance.

I know this sounds bat-shit crazy but it worked for me. I guess power saver mode messes with DirectDraw or something.

Sounded crazy indeed, but worked for me. Thanks!

... wow. Crazy solution is crazy, but solution nonetheless 0_o

For those who, like me, didn't have a "High Performance" - only Balanced and Power Saver - and got confused, you need to change plan settings, change advanced power settings Intel(R) Graphics Settings (for me, anyway), and change the thing under there to maximum performance.

This worked for me also.

Well I'll be damned. Bat-Shit crazy and it worked for me too. This is the reason I have put off playing this game for so long. thanks!