I've been looking for a way to run my 2 CD version of TLJ on Win 7 for a while, but none of the solutions that I've come across have worked. Today I found a trick I haven't seen before, and it worked to get the cut scenes running without a problem. It involves setting up a secondary display as a VGA display (but doesn't require another physical monitor). Maybe this trick would work with other older games as well? Anyway, I found it on a Steam forum post here.
Hope it works for you, Patricia. If you're not used to messing with your display settings, you might want a moderator to weigh in on it first...but it worked great for me.