Not really any difference on XP but I'm wondering if you had some kinda adapter if you could just run the game without that launcher workaround.
I launched Gigawing and Raiden fine. Is Raiden a vertical shooter? In XP I had to manually set the resolution to 1280×720 to get SF4 to run and I connected two PCs with a network cable (directly together in crossover fashion), gave them IP addresses and played myself in a network game of SF4, heheh. I rage quitted on myself and it tells you to call the staff when one machine loses connection.
Wonder if KOF98 works like that.