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I had the same issue.
Find the "My Games" in "My Documents" and then enter the folder called "Capitalism 2" in that folder you will see a file called "Config.dat"
Delete that file and then restart Capitalism 2 and you should no longer get the error and should be able to play normally, without having to reinstall or lose any save games.
The path to the correct folder is:
C:\Users\yourprofilename\Documents\My Games\Capitalism 2
Though it may be different depending on your version of windows.
Vista can be tricky with some installations even if the game says it's compatible. The first thing I would try is running the installation with escalated privelege. To do this follow these instructions...
1. When you insert the installation CD, an autorun screen will most likely pop up inviting you to install the game. Cancel this.
2. Go to my computer and right click on the drive that contains the installation CD. Choose 'explore'
3. A file list will appear listing the contents of the CD. Scroll through the list and locate the file that launches the installer. This may be called setup.exe or install.exe or something like that.
4. Right-click on the file and choose "run as administrator".
5. The installer should launch and hopefully the game will install OK.
If this does not work - you can also try updating your graphics card drivers. First - identify what type of graphics card you have. (right click the desktop - click on personalize - click on display settings (I think) - and note the name of the adapter. It will likely be either ATI Radeon or NVIdia GeForce with a number after it. Let me know what it is and I will get you the web address for your update.
if you are having the error code "80010002" then shut down your psp, then start it up again holding the Right Trigger to activate recovery menu.
go to Configuration, and use no umd.
then go to Advanced, then Advanced configuration, then disable both of them.