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Okay let's try some standard things.
1) Rename the AVI folder to AVI_back
2) Set the color depth to 16BIT
3) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.
4) Update your Windows, update your Video card drivers and audio card drivers. Then repeat steps 1-3.
 
Okay lets take a more indepth view and see whats going on.

First have you patched to 1.1 your first posts says 1.00.

Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
Keep the AVI folder renamed and now rename the music folder in the same way.
 
Making progress here!

You should still have sound, just not music.
You can try the music with another player running in the background,
Or try and hunt down a new driver for your onboard sound, either from the sound card manu. or the MB manu.

It could also be possible to play the music if you experiment with the sound acceleration which you find in the Dxdiag program.