I've got vista, and it works perfectly for me... (always have - I had XP before).
you should check if the censor.package is in your downloads folder. You have to double click on the patch (called "see them 2" - marked as application), so that a little window with four pictures comes up. Then you choose the options you want, so that a green V comes up in each of those pictures (there are red crosses there to start with). Then you fire up the game, and it should work.
I use all but the "placement out of grid" myself. It's just annoying. If I want that option, there's always the snapobjects cheat. But the 45 degree rotation is really good to have on
