Like the title says, does anyone know if this game actually uses DirectX 8 or 8.1? If it does, disabling hardware T&L is unnecessary since there are working methods to emulate or wrap DirectX 7, such as dgVoodoo2. Coincidentally, an easy way to check would be trying to use dgVoodoo2 with the game and see if a transparent dgVoodoo2 logo appears on the lower-right corner of the game screen. (For those who're wondering "how can DirectX 7 support Hardware Transform and Lighting?", there's a section of the official Direct3D documentation which talks about this.)
Talk:Railroad Tycoon 3
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