-windowed is a command line parameter.
Basically you can use it in two different way:
A,
type the command "baron.exe -windowed" into a command prompt after navigating to the dir of rb3d (wincommander users has some advance here)
B,
Create a new shortcut for baron.exe (or you can use the normal shortcut, since this small change can be reverted easily)
right click on the shortcut > Properties
In the shortcut properties window, on the shortcut tab there is a target parameter.
For me its:
D:\Games\SIERRA\RedBaron3D\Baron.exe
So I change it to:
D:\Games\SIERRA\RedBaron3D\Baron.exe -windowed
apply changes, start, and it works... or not. hopefully yes.
LEt me know if you managed to do it, and sorry for my english, there's a lot more room for improvement.
Alrighty then we are making progress! Windowed mode got the game to run. Also, after choosing a gameplay option, such as Fly Now or Campaign, the game will switch over to full screen, so I don't play the actual game windowed, only the menu selection screen.
The only problem now is the joystick. The game doesn't see it at all, and all control is done via the keyboard only. XP had no problem seeing the joystick, and I can't remember ever having to mess around trying to get it to work.