Are you using DosBox and the DOS version of the game? As far as I know, that is the only way to get GK1 working on XP (I haven't tried it, myself). There are instructions
here. DosBox lets you slow down your CPU - maybe it also slows down the CD-ROM?
For the full screen thing, you probably have to set your monitor to 640x480 resolution. XP doesn't list this as an option in the display properties but you can do it manually. Right click on your desktop and go to Properties / Settings / Advanced / Adapter / List All Modes. From the list, select 640x480 resolution and 256 colors.
-emily