Sorry to gravedig, but having finally - years after this thread died - figured out the problem mab was probably having, since I've been having it too, I thought it'd be worth mentioning it. So at least the solution is *somewhere* on the net!
It's ZoneAlarm
Broken Sword install does not like it. At all. Unplug your internet (for safety) and quit ZoneAlarm, install everything, then reload ZA and plug back in.
No idea why it doesn't like it, but it doesn't. Hopefully the game itself, once cracked, won't be as fussy... I'm off now to find out