Thanks for replying and helping me out! Unfortunately, I couldn't resolve the issue, but here are my results.
First, I returned to the Sold Out MM9 + 1.2 + 1.3a Patch game.
I did try to update my graphic driver NVIDIA GeForce 8800 GT, and it turned out I didn't have the latest drivers, but even after updating the problem persisted.
I made sure that all EXEs are tagged for WinXP compatibility and ran as administrator. Didn't know how to do that for DLLs, there's no option like that when I do right click+properties for them.
Then I tried to run the game windowed by adding the suffix "-w" in the target for the shortcut. That did not get the game to run windowed (is there another way to try and force the game to run windowed?), but surprisingly, the game ran smoothly, no flickering, and Ravensford loaded nicely. However, after trying to run the game a second time, everything was the same: flickering, and getting stuck on load screen while only hearing the audio of Ravensford. Really confusing.
The only options the game itself allows to be changed are
Disable: sound, music, light mapping, fog (nothing checked)
Enable: optimized surfaces (checked), poly gap fixing (checked), triple buffering (not checked), single-pass multi-texturing (checked). On the Display Settings, the only option is to choose renderers, but there is only one on the list: LithTech Direct3D Renderer (d3d.ren).
I do not know how to try to run the game with and without hardware acceleration.
Also, I'm attaching an image of the top right corner that flickers, maybe it will be of some help. Note: the flickering is here demonstrated on the options screen, but it also occurs during party creation and in game (albeit more rarely in game).
I am seeking help here with the assumption that this game is playable on Windows 7, I hope that is at least correct? I am also assuming that the flickering has something to do with the fact that the game crashes.
Thanks for taking the time to help me, may the blessings of the Ironfist Dinasty be upon thee 
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