If you are running Windows 7 Professional or better you can download "Windows XP mode" for free from microsoft's web-site.
http://www.microsoft.com/windows/vir.../download.aspx
I haven't tested this at all, but it's basically a fully licensed version of XP running in a virtual machine. It looks like it integrates so that you don't have to feel like your running a VM for just one program.
Let us know if that worked and good luck.
(Also you might try right-clicking the installer and selecting "troubleshoot compatibility" if you haven't done so.)