So I've tried many of the solutions to no avail. The character flickers constantly, as does any part of the screen which goes translucent, for example the opening scene. The cursor behaves sometimes but upon launching the main menu which flickers unrelentingly and menus still appear even after closing them, it returns flickering and gittering around. I'm using win7 64bit and have tried all the compatibility options as well as the -e fix and whatnot. Is there any solution? Or am I out of luck.

Same problem here. Some weeks ago, I was able to play without any problems.

Now I can't see my character and the menu is flickering ...

So it might be something to do with nvidia cards or clashing between my onboard card and the nividia card. Regardless, switching to using the onboard one seems to have fixed the problem for Sanitarium and a few other games I was having problems with llke freespace.