My computer was running XP Pro with service pack 3. I installed Myst Masterpiece Edition. It wouldn't run. Original disc came with Quicktime 4 and Direct X 6. I uninstalled my Quicktime 7 and Direct X 9 and installed the older versions on the disc. No joy. I right clked the shortcut which starts the game, set to various descending Compatibility Modes. That helped but only got the sounds, no video, although the closing credits would show when clicking on Exit. No sort of manipulation of Compatibility Mode in either Myst or Quicktime got the game to play. I suspected it was due to the newer controller chips on motherboards which never even came with windows 98 graphic files, and Myst just wasn't able to hook into the video properly.
The Solution. It's not difficult, but time consuming and for some will be frustrating, especially if they no longer have a retail windows 98 Second Edition disc. I downloaded Virtual PC 2007 from Microsoft, which XP Pro with service pack 3 will run. If you have XP Home, you could try the Virtual PC 2004 instead, see if it will do the same for you. After installing that, I accessed it, let it control both the floppy and CD drives. I set up the virtual drive in the program, left it set to Dynamic expansion rather than a specific size, set for 128 memory use. I inserted the boot floppy and formatted the virtual drive. I then did the "sys" command to tranfer the system to the virtual drive (sys a: c
in DOS. Since I'd booted with CD drive support I then changed to that drive and ran the setup.exe file. I fully loaded windows 98 SE on the new virtual drive. I adjusted the win98 settings in the display to 640x480 and for 16 bit color. I inserted the Myst disc into cd drive and installed the game into the win98 virtual drive. I was then able to properly access the game, it worked fine.
If you don't want to use the disc each time, you can create a second virtual hard drive in the windows 98 virtual system and first copy the entire MYST cd over to it, then run the MYST setup files from there to install the game.
I know this solution is about 7 months late for you, but maybe you have this thread under watch, and it will help anyone else who trips across the thread while searching for a solution. There's also a couple youtube videos on this if you search all terms Myst 98 XP virtual.