OK - Here are the complete instructions for running a very enhanced version of System shock2 on win xp.
1. Download and do a fresh install of the rip from the underdogs - link posted on the amazing 3dsl site.
2.Make sure you have a divx codec installed - get one here:
www.divx.com3.Edit your shock.cfg file , adding "safe_texture_manager" (without quotes) to the last line.
4. Make a backup of your shock2.exe file .
5. Now here's the best part: Download the system shock2 cd maker file- see note at bottom of the post.
6.Follow the instructions and run the cd maker to convert your rip to an iso - very clever.
7. Install a new system shock 2 from your burnt or mounted iso.
8. Patch the game - patch included in the cd iso.
9. Add mods from iso - follow included instructions to add hi-res textures, models, Improved anisotropic filtering facilty, Improved gameplay fixes and enhanced sounds.
10. Replace the shock2.exe with the one you backed up from the rip to play the game properly without cd. (The cd maker includes one but it doesn't work).
11. Iso is no longer needed - remove disk and play enhanced System shock2.(not quite doom3 but pretty good).
The download for this cd converter is 128mb and available via bittorent. There are about 15 seeds atm and it seems an active file.Unfortunately i don't know how to post bittorent links so later on i will upload the torrent file ( only 22 kb but my isp server is down atm ) and post a link to it here - in the meantime if anyone needs it either send me a pm and i can email it or tell me how i can post the file here.