I just bought the S+M season 1 CD, installed all fine and went to run the game.
Apon loading I get a mini black window, then a white window then the full screen black window. From there I get a game sound that repeats. I do not get any error sounds from windows and I'm not able to Alt +f4, Ctrl Alt Delete to see if I get an error. I pretty much just log off and back on.
I did a full XP re-install and I believe ive updated everything but I could be wrong.
Also, the demo's for Episode 4 does the same. I was able to run Episode 1 fine when it first came out.