It worked on my Windows XP laptop and Windows Vista PC. It crashed occasionally at first, but then I changed the compatibility mode and it has worked fine on both systems since.
Install the game, then find the 'play grim fandango' tab in your start menu, right click, 'properties', 'compatibility', 'run this program in compatibility mode for: Windows 95', click 'apply', click 'ok'. Now play the game, it should work fine and with no need to get any patches or anything. I just completed the game without any technical problems having done this.
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