Tried playing with Windows 7's compatibility mode for older OSes? (You need Windows 7 professional or above - This won't work on Home, annoyingly) AO works totally fine for me running under Windows 98 compatibility mode. AE appears to work fine without me needing to do that.
Right click on the abewin.exe or whatever your AO install is named as, select "Properties". In the box that appears, click the "Compatibility" tab. Check the box next to "Run this program in compatibility mode for" and select "Windows 98 / Windows ME" from the dropdown menu, then press OK.
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