Let me make a short summary of the different methods and their advantages and disadvantages.
It works on Windows, Linux and OSX. Hardware acceleration works. This means better colors, anti aliasing and anisotropic filtering.
It still crashes a lot though.
From my experience it's completely bug free. Instead of the linked launcher I would recommend using the setup by the same author:
It installs all files to disk, which means the game will run without discs. It also installs the latest version of the launcher. Unlike the original setup, this setup also runs on 64bit systems.
After installation run the official 1.01 update in Windows 98 compatibility mode. The launcher itself should also be run in Windows 98 compatibility mode.
Apparently there was a rerelease in 2008. This version comes on one DVD and supposedly runs on modern versions of Windows. I could not test this version, yet.
I also only found it on German Amazon for trice the price it used to be:
Strangely British and American Amazon use the cover of this version for the normal version, but they only have used copies anyway.
The first disc has an additional copy protection in the German version. Every .lab file goes until the end of the disc, which produces a lot of junk data.
For ResidualVM used this program to copy the files:
It will cut off the junk data.
For the setup/launcher use a real disc. Deamon Tools will not work. It also takes a lot of time to finish the setup. That's normal.