Something in the newest Nvidia drivers broke Starlancer for Win XP, but something in Win 7 fixed it I guess.

http://www.youtube.com/watch?v=rIARy_v_3-w

Are you using a flight stick or keyboard? Seems like it didn't have mouse control like Freelancer did.
I got that a few months back, but didn't get around to playing it much due to some other games I got. It ran in Vista, I didn't try it on my XP machine.

I have an old Microsoft Sidewinder Precision 2. I never could get used to Freelancer with the mouse. I thought SL could be controlled with a mouse, but have never tried it.

Last time I tried it in XP, it would crash regularly, right before a mission would end so I figured it to be driver related. No patch was ever issued for this game. Just a couple of hacks that I use like a res-edit tool so I could set the resolution to 1280x1024. There are several ship hacking tools available which will make ships faster, bigger guns, cloaking etc, but without multiplayer, they are kind of meaningless.

There is a BSG Cylon Raider and Colonial Viper done too. I have those files, but don't really know what to do with them anymore. I used them once years ago and they worked.

Not sure I want to lug out my x-52 for it, but maybe this would finally be a use for this crappy aviator I got for my 360. LOL
I don't think anyone was able to work with the game to handle mouse control. I wish Freelancer had this cockpit view.

It'd be an awesome game for XBLA. I've still yet to beat it.