Setting the game to run in Win 95 compatiblity mode should be enough to allow you to play in 32-bit mode - at least, it works for me that way. However, it is possible that the problem you're encountering is related to something other than XP, because in XP, you should have trouble running the game even in 16-bit mode (without turning on the compatibility mode, that is).
Oh, to set the game to run in Win 95 compatibility mode, what you need to do is right-click the shortcut to the game, open up properties, and go to the compatibility tab.