The older link we had on this disappeared, but I may have found another one - or at least something that will work.
In the above link they reference this file
If this doesn't work let me know, as I have no practical way of testing it unless I had the same "problem".
Previously I Googled it, and come up with several links regarding running 16 bit programs on WIN XP 64. From what I have found so far, there is no "real" solution. Microsoft has quit supporting 16 bit applications in their 64 bit version "period". Somewhat of a "poor" decision, but typical of Microsoft's policies the last few years/versions.
There "may be" a way of designating the SHORTCUT icon's properties to emulate WIN XP 32 bit, but I don't know as we don't have a 64 bit version here.
If the above fix does not work, we may not have a solution. If you have a NON 64 bit computer, so I'm afraid that may be the only real solution.
Oddly enough We have very few problems with "Vista" which is Also a 64 bit OS.
I would suggest Googling (above link) "16 bit won't run on WIn XP 64 Bit", and perhaps someone has come up with a work around.
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