My question is about settlers_3... can it be ...

I dont't use the game but am trying to help you with your problem.  Maybe you should read the forum in the link.  It is a discussion of other teens or young adults whom are having the same problem with Windows XP and they speak of obtaining a patch at an ftp bluebyte site to fix the problem.  They even speak of downloading problems and how to correct those too, in order to play the game.  Good luck, and I hope you get it to launch.  Apparently, this problem has been around since 2006.

http://forums.ubi.com/eve/forums/a/tpc/f/7711057942/m/6891008492/p/3/xsl/print_topic 

Well I thought that the solutions they provided in the forum would work, they practically swore by it.  Did you go to the site to download a patch and follow the instructions to open the file.  You gotta at least try.  Don't give up if  you havent attempted.  Because they too, experience your problem.  I know its a bit much to do.  But I'm hoping you get an answer for Windows XP, but there may not be alot of people using the game in this forum.  It's has already been a day for you to wait.  The best thing I can think of is to visit the Settler 3 website and click on "contact" if its available and ask them to recommend a patch to launch your game using Windows XP.  Sorry you're disappointed, and thanks for the vote by the way....I really appreciate it, but I Truely want to help you solve this issue.

Ok i just went to the site and looked around and copies this below:

Damian_ i dont realy know much about all this fuss but seems to me that no one has jet gone to:
ftp://ftp.bluebyte.com/updates
all the pactches ever made are on that fpt site
take your time to navegate round and good luck

I clicked "up to a higher level directory" and selected games and then I was prompted where I wanted to place my file.  I then selected save and chose desktop so that I can find it.  But I suggest you play around with it until you find the patch that works.  You can always delete it from the desktop it if doesnt work, and you also must go into the control panel and remove it there as well.  It's gonna take some time.  But looks as if in the forum, they suggested using 

Wait, I just click on the "eng" folder and saw a link for settlers 3 in there. Try one of those. 

From what I gather from the forum is this: 

1: install the game
2: apply the patch named something like this "160new.exe" (this was recommended)
then play the game

if you get the kernel error message copy the s3.exe file that is avaiable from either of them ftp sites i saw on this thread i can get them myself from there.

once you copy this file you will get a black cmd window with an message box like "unkown 2" and an ok button. as you need to run "File Converter.exe" that is in the settlers 3 installation folder to let this s3.exe file work.

so recap:

1: install game
2: run file 160new.exe
3: kernal em received
4: copy the new s3.exe (make sure you make a backup of the origional one)
5: run file convertor
6: play and have fun.

Hmmmm now that is a REAL problem.  You can't get past the most important phase -- installing.  Why dont you try this. 

<> Place disk into the "a" drive

<>go to start

<>click  run

<>and type a:

hopefully it will run..... 

I hate to suggest the most extreme action here, but I know you want to play the game.  It looks like it may only work with Win 98.  If you've tried to installed and it doesn't work, and you are using your computer to do as you wish and you have your Windows XP installation disk,  I recommend putting Windows 98 onto your system.  You can get a legal software free download, after you become a member.  Membership fees for the first month is $5.00, and you can always replace Win 98 with your previous XP.  Bu t I wouldn't do it unless I check with  contact at the Settlers 3 website to see if the company can recommend a fix to your problem.

link to Win 98:  http://www.completelyfreesoftware.com/join.html