I have been able to run MOO under XP using information on Jon Sullivan's site and a post on the GalCiv forums, however I've found a better solution -- DOSbox,
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http://dosbox.sourceforge.net/news.php?show_news=1>
Under DOSbox, sound AND music work. DOSbox allows finer control over machine parameters (# CPU cyles, # frames skipped) to control program response. You mentioned that "the animations would run lightning fast", do you have a benchmark as to what is "normal" speed and what is "fast"? I did notice along with working music and sound effects no longer skipping, that the missile base launching four missles in the intro is MUCH faster under DOSbox.
Be seeing you...
---> TBC (Throttle Back Cycles?)