Railroad Tycoon II was released in 1998, and was developed primarily for the Windows 98 operating system. However, as of June 2011, the latest version of Windows is Windows 7, four versions later than Windows 98. However, using Windows's compatibility mode, you can fool Railroad Tycoon II into thinking it's running on Windows 98, letting you play the game properly.
Click the "Start" button, then click "Control Panel" in the menu that appears.
Click on the "Programs" option in the Control Panel window.
Click on "Use an older program with this version of Windows" to open the compatibility mode wizard.
Click on "Railroad Tycoon 2" from the list of programs that appear.
Click on "Windows 98" from the list of operating systems. Click through the remaining prompts without changing anything.