There is no reason why 16bit programs will not run,
I run som old 8bit programs ok.
Try clenng the CDs.
Also to get rid of the error messages try a repair
Repair XP by replacing corrupt files
in the run box, press enter and let system file checker find and replace missing / corrupt file in windows and explorer.This will take awhile to complete and you may be asked for the CD to be in the drive if windows is not preinstalled on the hard drive.
sfc /scannow problems