Yes, I have done this to every single properties on every single related file that allows it. BTW I CAN play Alliance.. but not Xwing vs Tie or Tie 95 (my favorite Lucas Arts games)

I've done that too and still can't get past the launcher and this message:
CHECK YOUR JOYSTICK AND MAKE SURE IT'S PLUGGED IN

The joystick is a Sidewinder game pad and it works with all other games such as Earthsiege 2 and Mechwarrior 3

Already set up this way..(joystick preferred in advanced settings) here's the windows popup message I get after I click on the launcher:

CHECK YOUR JOYSTICK AND MAKE SURE IT'S PLUGGED IN

I can't get past this message!

As far as manuals go:
http://www.replace mentdocs.com/download.php?view.5093
http://www.replace mentdocs.com/download.php?view.5094
As far as DOSBox goes: the program not only emulates the entire DOS environment but also the entire PC hardware therefore it is quite resource-demanding. Also latest versions of DOSBox seem to work better than the older ones so be sure to try them. Also try to increase the CPU Cycles (try 5000) but not too much (the higher value may not be necessary and may actually slow the game down due to the fact that your processor may not be able to keep up with the chosen CPU cycle rate).
If still no go, try using VDMSound (it only focuses on emulating some legacy hardware rather than entire PC).

Please try the below:
Download and install DOSBox for Windows.
Follow the instruction from this page. They refer to a different game but the main idea remains the same (points 3, 4, 11, 18).
You need to make DOSBox see your hard disk (*mount c c:\* - this will tell DOSBox to use your C drive and name it "C"). Then make DOSBox see you CD/DVD drive: insert the game's CD into the drive enter mount d d:\ -t cdrom. This will make your CD/DVD drive visible in DOSBox as a D drive. Now, this assumes that your CD/DVD drive is D in Windows. If it's E then the command is mount d e:\ -t cdrom, If it's F then mount d f:\ -t cdrom.
After all this is done, you would need to install the game if it's not installed already. Enter *d:* in DOSBox to access your CD/DVD drive with the game and enter install or setup. Configure the game (consult point 11 - but use Sound Blaster Pro or Sound Blaster) and install it to your C drive.
When this is done, exit the installer, enter *c:* in DOSBox, then enter the folder where the game was installed to using the c*d* command (if the game was installed to XwingCD then enter *cd\xwingcd*) and run the game by entering xwing or bwing. Check how the game works and adjust the CPU cycles as mentioned in point 18 (note that XWing needs less than 8000).
To make DOSBox work in fullscreen mode press ALT+ENTER. To make DOSBox work in windowed mode press ALT+ENTER again.
After you finish the game, exit DOSBox. Next time you wish to start the game, run DOSBox again, mount the hard drive and CD/DVD drive exactly as before, start the game from your hard drive (don't install it again) and adjust CPU cycles. There is a way to automate this but we'll get to that later, if you wish.

i believe i have the dos version. launcher did not come up when i put the game in

I just recently dug up my old xwing game and would love to play again. can u help me get it installed? thanks

This was covered before, but I'm still having problems getting my X-wing to perform a roll. Back in the days when I had a two button joystick under DOS there was no problem, but even when I got my first Thrustmaster joystick which had four buttons, the roll function dissappeared. These days I'm using a Saitek X45 and decided to play X-wing windwos for old times sake. I've got the X45 programmed to do everything I want, but I still can't get the ship to roll. I've tried to configure one of my top buttons using the Saitek software with Alt-s, and even used the game's configuration options to assign Alt-S to button #2, but still no roll when I press the button and push the stick left or right. Anybody have any suggestions?

I have XP and windows 95/Tie 95 (plus balance of power, X wing 95, etc.. the collectors pack)

I have XP home edition. I've read the entire thread, applied the patch, tried the MS toolkit and nothing helped. I can't get past the launcher because it tells me I don't have a joystick plugged in. I not only have a sidewinder game pad plugged to the USB in but I use it for many other games (Earthsiege 2, mechwarrior 3, etc) and it's functioning perfectly. Tie 95 is perhaps my favorite all time game and I can't play it on this machine. I'm getting so frustrated that I'm about to pull my old Windows 95 computer out of storage and try to find a joystick that will work with it.. help?

Thank you, Thank you, Thank you. I thought I would never be able to play these classics again. Now, with this fix, I can.