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Hints & Tech Help...

If you are experiencing problems with cutscene playback in CMI try this:

Go to: Start-Run
Type dxdiag
Click on the sound tab
Lower the sound acceleration level to basic acceleration
Exit dxdiag

Remember to put the sound acceleration back to full when you've finished playing CMI. Alternatively you can try the CMI Launcher.
Updating to DirectX 9 also seems to fix the problem.

If CMI insists on trying to install an old version of directx before it will run (then failing and not running) try creating a blank .txt file, naming it DDHELP.EXE and placing it in the windows/system32/ folder.

Thanks to bgbennyboy for tips.