As I could not find the answer anywhere in the interwebs, here I call for help in an attempt to solve.

Daytona USA Deluxe PC (1997) is the official port of Daytona USA Championship Circuit Edition to PC's. Improved graphics (however it lacks one camera mode), allows analogic controllers (current ones work perfectly), one exclusive circuit track and so on.

But it is known to be a problematic game since the first release for Win95. With newer Operating Systems, it became even more complicated to make it run properly.

I could make it run in my Windows 10 system, but I still could not solve 2 problems:

a) The window itself appears in the screen. I could not make it run in windowed mode and the borders are always there. Confused? See attached images. As you can see, window borders/menu keep their space, and I cannot select any other window modes.

b) The old problem with audio. The game does not play the music.

Installation history:
- Copied the contents from CD to cue/bin format.
- Tried to run cue/bin from Win10 without success.
- Converted cue/bin to ISO.
- Installed the game.
- Game would crash at start.
--- Scavenged the web for DirectX Patch specific for this game.
Game would launch without audio.
--- Scavenged the web for fixes.
Got NOCD, but it is a crack, so not installed.
--- Scavenged the web for more fixes.
Got Framefix, but not necessary, the video part works normally.
--- Scavenged the web for even more fixes.
Found tips about the drive letter in which the CD-ROM should be installed.
Tried change the letter to D: or to A: without success.
--- Scavenged the web even more for fixes.
Placed ddraw.dll directly into the game folder.
No success.

And came here.
Does any good soul have any idea how to solve these problems?
(BTW my PC has no optical disc drive and I'll not buy one to play a single game).

The game originally runs on DirectX 5 (DirectDraw), and it looks like you added a patch to make it run on Direct3D.
I would recommend you to go back to the original DirectDraw mode and run the game using some DDraw wrapper, something like DDrawCompat (or maybe a different one). You might even need to uninstall and reinstall the game without that D3D patch and then add the DDraw Wrapper.

Good Luck!

If the game uses DirectDraw, you may need to enable it on the Operating System, as it is disabled by default.
Programs and features -> add Windows features

I would also recomend some wrapper like DGVodoo or the one in post above. PCGameWiki has some tips and links
[url=https://www.pcgamingwiki.com/wiki/Daytona_USA:_Deluxe]https://www.pcgamingwiki.com/wiki/Daytona_USA:_Deluxe[/url]

If that doesn't work you could try MS Virtual PC 2007 with windows 95 or 98 as the OS.

Updating for anyone who comes by:

I tried the advices, but still not success.

1) DirectDraw: I have already installed all legacy environments, such as old/deprecated versions of DirectX. I used the ddraw.dll file from these environments without success. Then I downloaded the pointed wrapper and the game finally would run without the window borders.

However the quality of the graphics lowered considerably. Even with the options high polygon and no interlaced, the graphics are very bad in comparison to the Sega's dedicated DirectX patch for the game. Also, the game became instable, crashing often and making gaming impossible.

This also did not solved the lack of audio tracks.

2) I still did not tried with a virtual machine, as suggested later. I'll try it, but first I'll need to setup the environment. I'll use my work's computer to make ISOs of my previous Windows OS and give it a try. Perhaps I'll have more luck this way.

Thanks all you guys, and good gaming.