Neither works. If I launch directly from steam, it brings up the launcher. When I select "Play", I get a spinny Windows 7 circle-cursor for about 15 secs, then nothing.
If I just click APGame.exe, I just get the spinny cursor for 15 seconds.
I have tried running as administrator, running in XP service pack 2 compatibility mode, tried with almost all the compatibility checkboxes on or off in every conceivable arrangement. If you visit the SEGA boards, there are a number of threads at those forum that dead-end into SEGA support pages that no longer exist, also.