Okay, I pretty sure I had this install on my computer back in the Window XP SP 3 era. So I may want to hear what is your problem could be. Although my bets tend to lie on the fact that this game was made for Windows XP and Windows Vista rather than Windows 7 and Windows 8. In fact a lot of my older PC games made by the Western market fell through for this same reason.
So lets hear what your problem could be and see if I can figure out a alternative solution.
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Meantime, I shall give myself 2 to 3 days looking for my old DVD of this game and try installing it on Windows 7 Environment to see if my guess is right.
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EDIT AS OF 2013/05/17: I'm having trouble finding my original disk and now in process retrieving from another means. Please be patient until I can install it and test out the method of installation and whether I can replicate your problem.
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EDIT AS OF 2013/05/18: I have completed installing the game and patching it to Version 1.01. It worked perfectly fine and there was no issues about the processing of the game.
Steps are the following:
Mount the Game (Used Daemon Tools for this case)
Install the game
Install Direct X9.0c (If you have not already have it on your system)
Use Patch 1.01 to update the game
Test run the game to see if it's working with the DVD
If confirmed working with the DVD, unmount the DVD
Test run the game without the DVD to see it if works
If confirmed as working without the DVD continue playing as it it
Please be aware I have my entire OS setup in Japanese from start to end. This includes all the 'Regional Language and Settings' in 'Japanese.' And also the Time and Date in Japanese Time Zone.
Shine