Delphi 1.0 and Delphi 2.0/3.0 are using different formats in their RES files.
In order to be able to compile this sample application you first have to 
rename the proper RES file:

  Delphi 1:    *.RES16  ---- rename it to ---->  *.RES 
  Delphi 2/3:  *.RES32  ---- rename it to ---->  *.RES