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I had the same problem on my Toshiba DVD here... using the provided setup.inx solved it though, except now I get a "binkplayer encountered a problem and will be shut down" (this is on XP Home)every time I run the .exe. Otherwise the game runs fine. Looks pretty good to me, started a Castilie game to warm up last night - I'm getting back to it now. Seeya...
 
rename your AVI folder to AVI_OLD to get rid of the binkplayer problem.
 
already got it somewhere, but thanks :)