This also works for Win 11
This game wasn't meant to run on current software, it is old. But we don't have to do to much to get it to run perfectly fine.
Here is what you need to do.

First - clean install to get a baseline.

Second - Download https://www.microsoft.com/en-us/download/details.aspx?id=8109
This is the direct x version needed for the game, extract it anywhere you want and run it. There are a lot of files but you will find a .exe in there, that's what you run.

Third - https://github.com/elishacloud/dinputto8/releases/tag/v1.0.75.0
Download this dll, extract it, and paste it into the game folder.

Fourth - https://sourceforge.net/projects/dxwnd/
This is Dxwnd. Extract it to wherever you want, it is going to run the game for you.
You will
-open the main exe
-right click the middle of the screen and select add
-Name at the top doesn't matter, name it whatever you want
- Make both the path, and the launch section target the Fallen.exe in your game dir.
-In the check boxes ONLY select early hook and run in window. You can play around with the rest later if it runs.
-Set resolution to whatever, you can drag and expand the screen after the game starts to whatever you prefer.

LASTLY -
Open the config file in the game dir. , delete everything in it, and paste this
Afterwards you can open the game using Dxwnd. Enjoy

[Game]
language=text\lang_english.txt
scanner_follows=1
iamapsx=0
[LocalInstall]
textures=1
sfx=1
speech=1
movies=1
[TextureClumps]
enable_clumps=1
[Render]
estimate_detail_levels=0
detail_stars=1
detail_shadows=1
detail_moon_reflection=1
detail_people_reflection=1
detail_puddles=1
detail_dirt=1
detail_mist=1
detail_rain=1
detail_skyline=1
detail_filter=1
detail_perspective=1
detail_crinkles=1
fix_directx=1
video_card=0
video_truecolour=1
video_res=4
Adami_lighting=1
max_frame_rate=60
draw_distance=22
[Audio]
run_sound_dialog=1
ambient_volume=76
music_volume=82
fx_volume=73
3D_sound_driver=Microsoft DirectSound3D software emulation
dodgy_psx_sound=0
[Joypad]
joypad_kick=4
joypad_punch=3
joypad_jump=0
joypad_action=1
joypad_move=7
joypad_start=8
joypad_select=2
joypad_camera=6
joypad_cam_left=9
joypad_cam_right=10
joypad_1stperson=5
[Keyboard]
keyboard_left=203
keyboard_right=205
keyboard_forward=200
keyboard_back=208
keyboard_punch=44
keyboard_kick=45
keyboard_action=46
keyboard_run=47
keyboard_jump=57
keyboard_start=15
keyboard_select=28
keyboard_camera=207
keyboard_cam_left=211
keyboard_cam_right=209
keyboard_1stperson=30
[Gamma]
BlackPoint=0
WhitePoint=256
[Movie]
play_movie=1
Mode=254BitDepth=208