It CAN work depending on a few things.
One thing to note is that because my laptop doesn't have a CD Drive, I had to create a .iso file from my existing disc (using an older Windows XP Laptop), which ...
I have solved my issue. Silly me didn't look in the manual that came with AIR.
Here is what I did:
Navigate to the AIR directory: %appdata%\Sonic3AIR
Change "UseSoftwareRenderer" :...