OK..this is what I had to do to get SHIII to work on a WIN 7 64 bit clean install...
1. Insert SH III into drive
2. Open DVD and right click auto run
3. Select Compatibility Trouble Shooter- it will run and will select WIN XP SP2- select administrator rights and change for all users
4. Right Click Setup.exe and right click
5. Run the compatibility troubleshooter- again it will select WINXP SP2-select administrator rights and change for all users
6. DO NOT change any other settings
7. Run setup.exe
8. Install SH III (Leave disk in)
9. Do Not Install Game Shadow
10. Download patch 1.4 DVD english version and install
11. Download and run Starforce Removal Tool (My install did not find any SF Drivers installed)
12. Download and unzip rld-sh4.rar - it is a zip file that contains 6 files- MissionEngine.dll, reloaded, sh3(game launch), SimData.dll, StateMachine.dll, Utils.dll.
13. Copy all 6 files to SH III main directory an allow to replace originals(you will need Administrator Privileges)
14. Remove Install Disk and run game from Shortcut on desk top
my system- AMD FX 8350 Quad Core 4.33 GHz, 8GB RAM, ASUS Mboard. WIN7 ULTIMATE 64 bit, SP1