Battleangel

Ok. The Team17 support forum is back up and my problem was answered. For some reason it helped to delete the \Data\FMV\sega.mpg file. Duh. That was simple enough but admittedly not easy to guess. Thank you DarkWizard for sharing.
As for the rest, launcher.exe should be left where it is and worms3d.exe goes in the /bin folder.

I must say this game is hilariously fun. Seriously, who needs Half-Life 2 anyway?