I will not explain the issues LEGO Island has when running in modern PC, you know it already. So I'll just cut to the chase.
While searching for any info I could find about Voodoo cards and Direct 3D HAL on modern PCs, I came across this Wikipedia article, which had some interesting info on Voodoo cards and the Glide API. The article then lead me here: a site listing a bunch of Glide API wrappers for modern PCs, allowing the old games to be played without a Voodoo card. I've looked at all of them, and the most promising one is nGlide, a wrapper that is still being supported. It even lists Windows 8 as a supported system. I haven't downloaded anything, but I thought I should report it.