I just fixed the same problem for an older copy of the Rosetta Stone language software using Director 6. What you need to look up is Application Compatibility fix and globalmemorystatuslie. Here is a link to the Microsoft technet article:
http://technet2.microsoft.com/windowsserver/en/library/6932a9cf-a25c-4844-8f18-0e741120e3301033.mspx?mfr=true
I use an older copy of the Application Compatibility Toolkit (version 3). I build a fix in the form of "programname".sdb. The fix file can then be easily installed on any Windows XP computer using the command:
sdbinst "programname".sdb .
The whole thing is very complicated but relatively easy once you get the hang of it. A little research can payoff to build a simple fix that can be deployed to an entire campus or workgroup.