I just installed SH-CE on WIN/XP. Works fine simply by deleting the files mentioned by Smaragdadler in an earlier post above. The mouse was quite slow at first, but I've corrected that through the control panel. My Creative Audigy 2 ZS sound card used to be a problem. I guess updating the drivers corrected that, although the sound is a wee little bit scratchy, but all in all very usable.
I had SH-CE installed on the same computer already by using WIN/ME on a separate partition and utilizing the on-board sound. Guess I don't need that anymore. When installing the program I got a message that the Extended XMS Memory did not meet the requirements needed, whatever that means. I ignored it and installed the program anyway. Glad I did. Now if I could just get Panzer Commander to function properly on XP....................