If you are having problems with XP when installing a game or any software from a CD or DVD and get the error message "(filename) not a valid win32 application", then the 1st thing to do is check the CD/DVD drive and disc is clean. Then if that still fails, try to copy the whole disc onto your hard drive.
 
Just make a new folder on your desktop, right click the CD/DVD drive and select explore, press Ctrl and A to highlight all files and then right click once on a file and select copy.
Open the new folder, right click in it and select Paste, it should then copy over all the contents of the disc (10 mins approx). You can then double click the Setup/Install icon and hopefully the program will install.
 
If not, then the Disc is probably corrupt/damaged and you will need to get it replaced.
 
The Microsoft Knowledgebase FAQ webpage has some further solutions, but I wouldn't hold your breath trying them out with any success.
 
Hope this helps. :¬)