Hell Patrol,
I had a similar issue (I have Vista OS).
The game would not start, though it showed up as a Processes in the Windows Task Manager, multiple times as I started it more than once.
I re-booted & the game started, no problems.
There are known bugs with both V1.06a & 1.06b see thread:
http://www.ageod-forum.com/showthread.php?t=5034
Stay with V1.06 until the guys return from vacation.
Just re-install v1.06 and you should be fine.
Chamberlain