I have a question the compatibility of a game called EVE. Is it compatible with XP Home Edition?

Getting older programs to run on Windows XP Your game should have compatibility info on the box or in the readme file on disc. Even if it was made to run on Win'98, you can change settings in WP so it will run.
Here are MS instructions to run a compatibility test:

To start the Program Compatibility Wizard, click Start, All Programs, Accessories, Program Compatibility Wizard.
You can also use this method:
You can set the compatibility properties for a program manually. The settings are the same as the options in the Program Compatibility Wizard.
To set the compatibility properties for a program manually

1. Right-click the program icon on your desktop or the shortcut on the Start menu Or right click on the program Icon on your desktop.
2. Click the Compatibility tab, and change the compatibility settings for your program.

• The Compatibility tab is only available for programs installed on your hard drive. Although you can run the Program Compatibility Wizard on programs or setup files on a CD-ROM or floppy disk, your changes will not remain in effect after you close the program.