Thank you for a quick reply, your advice led me to the problem. My sega saturn usb controller was somehow messing with the clones start up. I unplugged it and the game works now.
P.S. Thanks for making such an awesome game.
Here is the client text if it helps
success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\My Documents\Clones\Movies..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\Application Data\Clones\Cache\Previews..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\My Documents\Clones\Screenshots..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\Application Data\Clones\Cache\Thumbnails..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\Application Data\Clones\Cache\Updates..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\Application Data\Clones\Cache\Avatars..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\My Documents\Clones\Packages..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\My Documents\Clones\Level..success
Making Directory: C:\Documents and Settings\Booj.BOOJ-CD38579CDB\Application Data\Clones\UGC..success
Couldn't read window position..using defaults
Adding Resource: Data\resource.dat
Adding Resource: Data\resource01.dat
Resource loaded 672
Resource indexed 719
loading paramfile.. 719
loading graphics.. 828
d3d is hard and hal
loading fonts.. 860
loading cursors.. 860
loading language.. 860
loading sound.. 875
loading gamepad.. 1094
Found GAMEPAD DEVICE [USB Gamepad] [56AC750-C1CB-11DF-8001-444553540000]: USB Gamepad
Found GAMEPAD DEVICE [Twin USB Network Gamepad] [6605E830-100C-11E0-8001-444553540000]: Twin USB Network Gamepad
Found GAMEPAD DEVICE [Twin USB Network Gamepad] [66085930-100C-11E0-8002-444553540000]: Twin USB Network Gamepad
Creating Pad input 0