Hmmm dan, when you say the game isn't working, how precisely is it not working? Do you get an error message? does your system freeze up?
also, which upgrades and utilities do you actually have. when I first ran the game under net framework 1.0 I found it not to work, and so had to upgrade to 2.0. Also, having the latest direct X helps as well.
If you are really stuck, and do in fact have direct X and net framework, it might be a more serious conflict with your system, and I suggest contacting Che martin (he's very good about answering tech enquiries).
Hope some of this helps, because rail Racer is imho an exceptionally good game, ---- easily my favourite racing game (in fact the only racing game I've ever had any luck with).
With our dreaming and singing, Ceaseless and sorrowless we! The glory about us clinging Of the glorious futures we see,
Our souls with high music ringing; O men! It must ever be
That we dwell in our dreaming and singing, A little apart from ye. (Arthur O'Shaughnessy 1873.)