I realize this is an old thread but hey, it's an old game!
Also on Win7 x64.
Briefly: I was having an issue with the installer, specifically that it couldn't open C:\windows\system32\Olepro32.dll, then it would CTD. I thought it was a permissions issue but despite giving myself and Administrators full rights on file mentioned above, no go. Giving myself and administrators full rights on C:\windows\sysWOW64\Olepro32.dll did the trick. Thanks again for the assistance, Collector, and thanks Schnulker for starting the thread.
Caught in your own cuffs? Need a hint? Or just want to talk about Police Quest - this is the place to do it!