So, I finally decided to work on this some more, and although the launcher works flawlessly, the game freezes while loading.
To get things running, I installed the following into a WinXP bottle: vcrun2008, vcrun2010, dotnet40sp1, dotnet35sp1, ie7, directx9, mdac28 and gdiplus (gdiplus may not be needed).
When the game loads, it freezes deadlocked waitong for thread 003c, which is:
warn:file:CreateFileW Unable to create file L"C:\\Program Files\\Star Vault\\Mortal Online\\mortalonline\\UnrealEngine3\\Binaries\\Win32\\..\\..\\MortalGame\\CookedPC\\Maps\\MortalOnline\\Myrland\\Myrland_P.mo.uncompressed_size" (status c0000034)
I am not sure why this error is showing up. I created empty .uncompressed_size files, but at that point the game errored saying that the maps should not be compressed.
Any ideas?