Hi Nightstalker, Okay, there is an issue with playing Age of Empires on Windows 7, even the compatibility doesn't seen to work. You could just try a google search to see if there is anything on the Age of Empires Forums. Most gaming forums have a technical workaround for windows 7, so just have a route through. I had the same issues with X2 The Threat. I ended up creating a folder and manually coping the files across then patched it (including a no cd patch) before playing it. It bloody worked! (Yay!)
I know that's not much of an answer, but it's the best I can give.
(New games, the new Starcraft is out, Starcraft 2...supposed to be awesome!)