There are some hits in google with exactly the complaint you have: it doesn't run in Windows XP. So I'm afraid it doesn't do. If it even doesn't run in the Windows 98 compatibility mode, I'm afraid all you can do is go to eBay and buy a second hand machine with about the specs mentioned in
You should be able to find one in the $25-$50 range.
Hope this helps.
I'm trying to get Ellie's Enchanted Garden to work on XP. All is does is sit there. I can see something called FINDPLAYSET in the process list, which may be related, but nothing ever happens. I've tried on both a Presario and a Pavilion, and I'm pretty sure the playset works because I used to have it on a very old laptop. I've already tried running it in Win98 compatibilty mode. Is there anything else to push or pull to get it working? My daughter would like to play with it.