If anyone is having trouble getting this to run on modern systems (e.g. XP64, Vista, or 7), you may have luck using older drivers (mainly ATi/AMD GPU users) or something that you can force extension limit on the game.
For example, Nvidia GPU users can try Nvidia Inspector which allows to set extension limit (choose 0x00004844 for Stubbs in that particular app) which at least for me solved the problem completely.
Some people have had luck with compatibility modes and such, but they made no difference for me.
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