Vol 1 does not work on operative systems later than Windows 98. Perhaps there is a patch out there somewhere, I don't know. If you have a Windows 98 CD available, you can do a virtual install using a software for that purpose. I have used VMware, which is free, and successfully installed both TOAW I and II on a Windows 7 computer. However, TOAW has come a long way since vol 1, and personally I found it hard to take the step back.
Cheers
Martin