Thank You so much for the advice!!!
By the way, I wasn't getting any errors before, the game would just freeze up and I had to get into the task manager to get it to close. But All is well now after I changed the settings.
I finally got it to work.
I un checked the "Read Onlt" button on the GTA game file folder and on the gta_vc.set file and deleted it again. And I changed the settings to run in windows 98 compatibility mode and started up the game. It works just fine now!!!