Yes, a while ago Andromedius noticed that when he launched the game from steam it would work (unlike when he started it from the shortcut created by the installer). In the end it appears that the shortcut is broken because it doesn't contain game's path in its "start in" field (more info
here). So basically you can fill that in or just create a new shortcut and it will work fine. There should be one additional step added to the list - replacing the original exe with the one modified by x-ray (it is buried somewhere in the forums, but the search option could help). It fixes some random crashes during the missions.
Unfortunately I tried to complete the Desert Storm campaign and 2/3rd into the campaign I started to get a crash every time I started a particular mission. I installed the game on my older system (XP SP3) and was able to complete the whole campaign without a crash. One thing I didn't tried on my Win7 64bit machine was to revert back to original exe (from the x-ray's one) although I also used it on XP machine as I was getting crashes without it.