It wouldn't hurt to try installing it to your User folders, although it's probably another issue.
Have you tried running the game in compatibility mode? Right click the shortcut and select Properties, Compatibility - choose Windows XP and see if it starts.
If the game promptd you to update DirectX allow it to refresh the libraries.
Edit -
According to the thread below - there may be an issue with Flash.
Valerie Porter and the Scarlet Scandal Forums The problem with the crash is Flash 10 causes a conflict. Go to Adobe and grab the older version 9 and install it. This worked fine. It made me go through the game quickly though, as I play other grames that require 10.