Googling gave me this solution:
1. Click on START, PROGRAMS, LEGO MEDIA, LEGO RACERS, UNINSTALL LEGO RACERS
2. It will ask you to confirm file deletion, and you should click YES. Once it is through uninstalling you will need to click OK to close the uninstall shield wizard.
3. Insert the CD into the CD-Drive and the auto install should begin.
4. Close down any open Windows and go back to the Desktop. Find the shortcut for LEGO RACERS and right-click on it. From the drop down menu that appears, left-click on PROPERTIES.
5. On the PROPERTIES screen find the box called TARGET, it should read something like "C:\Program Files\LEGO Media\Games\LEGO Racers\LEGORacers.exe".
6. Add -novideo to the end of this line so that it becomes "C:\Program Files\LEGO Media\Games\LEGO Racers\LEGORacers.exe" -novideo
7. Click on APPLY and then OK (or possibly CLOSE).
8. Use this shortcut to run LEGO Racers. "
Try this.