Well it looks like XP support came out in version 5.20.
The version of RSLogix you have came out before Windows XP. XP was a pretty dramatic update at the time and it required a lot of vendors to update their software. Rockwell eventually came out with an XP Compatibility Matrix so people could tell what would and would not work in XP.
At the time, some folks said they could make v5.0 work, but most people were unsuccessful getting that version to work inside XP. Although if memory serves, I seem to recall people getting v4 to work more often than v5. So, version 7.40 is the latest and greatest version.
Not sure why W2K or W98 aren't working. They are approved. Perhaps as mentioned, there is a bad disc.
OG