Just as 5th explained, if you have so little memory on XP then your system must make an intensive use of the pagefile. Which mean that the speed of your memory on your PC is greatly reduced by and to the speed of your HD.
Playing the game on a genuine DOS machine will prevent that, since 256 megs was a lot of memory back in the days. This is probably why you didn't have problems running SC3000 back then.
Because XP emulate DOS instead of being able to reboot in MSDOS mode like Win98, you'll always have XP memory issues.
Hell... I'd never run XP with so little memory myself... Must be slow as hell when you try to multitask... I hope you have a big fast HD and that your pagefile is set to an insane number at the very least... At least 7200 rpm...
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