Edit: the solution is to create an options.ini, find instructions here: http://forums.hexus.net/1039984-post34.html
Ok, I've tried the different compatibility modes for this, but none of them work. I've downloaded the d3xd9.dll (I needed it for flatout 2...) but what happens is it loads the small splash screen that says generals, does that for about a minute, then it goes away, but it never launches into the actual application.
I've looked on several websites and other people have the same issue, but I haven't found a fix that works yet. But someone said he did manage to get it to work. Any suggestions?