Thanks for the help guys. I am in discussion about upgrading, but there really shouldn't be any reason I can't get it to work - I got an even older version of autocad to work!
I am running 7 64 bit.
So - I can install FEMAP and I get no errors. However, when I try to run it, I get an error saying 'Error accessing the security device...' and another one saying 'This version not compatible with windows NT terminal server. Only the networked licensed version may be run on terminal server.' This is really two problems, because if it was just the key, it should open in trial/demo mode. I don't know.
The solver/editor actually runs and solves the <300 node test deck, but the dongle software doesn't so it acts like I don't have the key (demo version).
Have you gone through this before? I haven't dug into xp mode yet, but that is where I am heading. Just was looking for anyone who had been through it before and found a solution.