Microsoft Knowledge Base Article 317517 contains the following summary:
This article describes how to use the Program Compatibility
Wizard with computers that
run Windows Server 2003.
The Program
Compatibility Wizard prompts you to test your program in different modes
(environments) and with various settings.
For example,
if the
program is designed to
run on Microsoft Windows NT,
set the compatibility mode
to Windows NT,
and then try to
run your program again.
If this is successful,
the program will start in that mode each time.
The wizard also allows
you to try different settings,
such as switching the display to 256 colors and
the screen
resolution to 640 by 480 pixels.
Most programs
run
properly on computers that
run a member of Windows Server 2003.
The exceptions
are some earlier games and other programs that were written specifically for an
earlier version of Windows.
If you experience problems with a program
that worked correctly on an earlier version of Windows,
use the Program
Compatibility Wizard to help you select and test compatibility settings that
may correct those problems.
Many of the most common issues that prohibit
earlier versions of programs from working correctly are
resolved.
If you
run a
program and it does not function as expected,
run the program in one of the
compatibility environments.
WARNING
: Be careful when you use Compatibility Mode to bypass version
warnings in Setup and installation programs.
Some programs are designed for a
specific operating system and intentionally prohibit the use of
later versions.
These are most often system tools (such as antivirus,
firewall,
CD burning,
disk management,
and backup software) that
run at a very
low kernel mode and
have the potential to cause serious problems if they are
installed.