So I finally figured out how to get Grim Fandango to work on my Windows 7 64-bit machine.  It took a bit of work, but it’s worth it.  Here’s what I did (You need a windows xp disc/ISO and the Grim Fandango CDs):

1 - Install Virtualbox
2 - Set up a Windows XP guest with sound (I just gave mine 10 GB of space).  If you haven’t used Virtualbox before, don’t worry.  It’s pretty straight forward.  Just click “New” and follow the instructions.  Any extra stuff like sound is in the “Settings” area.
3 - (This one is optional but very helpful) With the Guest Windows XP machine running, click on Devices -> “Install Guest Additions” so you have better mouse integration etc.
4 - After windows is installed, do any windows updates you might need on it.
5 - I have a USB Xbox 360 controller, so I had to enable usb (I enabled usb 2.0 which requires the Oracle VM VirtualBox Extension Pack) in the Virtualbox settings and add a filter for the device.  Mine showed up as “Controller” in the list.  Also, I had some issues at first but I think restarting the virtual machine/virtualbox fixed them.
6 - Use Grim Fandango Setup to install the game
7 - With the Guest Windows XP machine running, go to Machine -> Switch to Scale Mode
8 - Double click the Grim Fandango shortcut.  Make sure “Run Grim From Hard Drive” is checked in the options before you launch the game.
9 - Maximize the window or go to full screen.
10 - Run Grim Fandango in full screen mode (On my computer, if I resize the virtualbox window it makes everything go black, so make sure you’re happy with the screen size when you start the game).

The reason I went through all this trouble was because Grim Fandango freezes Windows 7 64-bit completely (I had to turn off my pc - pretty frustrating).  It also has some weird sound issues that were extremely annoying.  This method seems to fix all that, and when it’s all set up it runs really nice. 
Enjoy playing this amazing game!

So I finally figured out how to get Grim Fandango to work on my Windows 7 64-bit machine.  It took a bit of work, but it’s worth it.  Here’s what I did (You need a windows xp disc/ISO and the Grim Fandango CDs):

1 - Install Virtualbox

2 - Set up a Windows XP guest with sound (I just gave mine 10 GB of space).  If you haven’t used Virtualbox before, don’t worry.  It’s pretty straight forward.  Just click “New” and follow the instructions.  Any extra stuff like sound is in the “Settings” area.

3 - (This one is optional but very helpful) With the Guest Windows XP machine running, click on Devices -> “Install Guest Additions” so you have better mouse integration etc.

4 - After windows is installed, do any windows updates you might need on it.

5 - I have a USB Xbox 360 controller, so I had to enable usb (I enabled usb 2.0 which requires the Oracle VM VirtualBox Extension Pack) in the Virtualbox settings and add a filter for the device.  Mine showed up as “Controller” in the list.  Also, I had some issues at first but I think restarting the virtual machine/virtualbox fixed them.

6 - Use Grim Fandango Setup to install the game

7 - With the Guest Windows XP machine running, go to Machine -> Switch to Scale Mode

8 - Double click the Grim Fandango shortcut.  Make sure “Run Grim From Hard Drive” is checked in the options before you launch the game.

9 - Maximize the window or go to full screen.

10 - Run Grim Fandango in full screen mode (On my computer, if I resize the virtualbox window it makes everything go black, so make sure you’re happy with the screen size when you start the game).

The reason I went through all this trouble was because Grim Fandango freezes Windows 7 64-bit completely (I had to turn off my pc - pretty frustrating).  It also has some weird sound issues that were extremely annoying.  This method seems to fix all that, and when it’s all set up it runs really nice. 

Enjoy playing this amazing game!