The same thing happens when I try to run diablo. Opening videos and the like stutter and freeze until I get to the main menu where everything works correctly. I was just wondering if there was some kind of solution that I'm missing that could help me see these videos as opposed to just hearing the sound.

Try to go to the directory where you saved NOX and right click GAME.EXE, choce to run as win 95/ME and check the box "run as admin". This did it for me, hope it can help you to.