I was just trying to play my CD version of Loom because I'm bored but I had problems. When I tried to play it without any fancy patches or whatever running in the background, I get to the point where the Elders are talking and the sound cuts out on me. When I then try and run it with VDMSound, it can't run it because it isn't installed or whatever. To my knowledge, it can't be installed, right? So what do I do?

LoomCd can be run with Quick and Easy and ScummVM.
You can run it with vdmsound by right clicking on the exe and selecting 'run with vdms'.

To help with the skipping sound (Go to My Computer -> Press the right button over your cd-rom letter (usually d: or e and click on Properties. Choose the Hardware tab. Select your CD-ROm and press the properties button. Uncheck "Enable digital CD Audio for this CD-ROM device" on the properties tab.)

My prefered fix (as for monkey1cd) is to make a cd image of the cd in your favourite cd-r package, then mount it in Daemon Tools and play it from there. Also disable digital audio for the Daemon Tools drive in the same way as above