Ugh... I think I burnt out a Monitor, and a CD drive playing that game. The later versions didn't have the same feel for me, original was always the best.
No, it won't. There was a complex workaround for Windows 7. Railroad Tycoon was fun too. If you're into that sort of thing. Around the time I bought and played those, I was very much into Prince of Persia 3D. Amazing graphics at the time.
Not sure if it will help but a number of older games (like Sim City 4000) that are widely reported not to work on Windows 7 actually work fine if you choose to install it in a directory outside the /Program Files/ directory.