I had trouble launching Tales of MI episode 1 on Windows 7, 64 bit version.
After days of head scratching I found a few causes and I have a few things you can try.
0. Make sure your computer actually meets or exceeds the minimum requirements. If your vendor says the video card installed on your 5 year old computer can handle DirectX 8.1 (Game requirement), it is better to check first.
1. Update Drivers. If you think you have the latest Video or Sound drivers, it is still worth checking. Sometimes the vendor jas special drivers available (Called "Omega", "ION", etc.). If the regular updated drivers do not work, try the special drivers.
2. Update DirectX. The installers does this for you but sometimes can fail and DirectX maybe was updated since you installed it with older (released earlier) games. The full and latest installer for DirectX can be found here.
3. Disable virtual drives and cloning software. Copy protection software doesn't like them. If that doesn't work, try uninstalling if you can.
4. Update you antivirus, firewall and other security related software (the software, not the virus, firewall or anti-spyware definitions). I found out that some versions of McAfee Antivirus (or security suite) and Comodo Firewall (or security suite) do interfere launching (or completely prevents) 32-bit processes on 64-bit operating systems (Both McAfee and Comodo released updated versions that solve this issue, other vendors suites may have the same or similar problem)
In my case updating the firewall fixed the issue (In fact: in the update history file the vendor states that the problem launching 32-bit processes was fixed)