Basically every time I try and enter a space battle I get an error message saying "action not supported" then the game crashes. Any ideas why I'm getting this error?

 

I'm running Windows 8 64bit

That's why you get a virtual machine, when trying to run Rebellion under Windows 8.

Which virtual machine would u recommend and what Os? I think I'll give it a try..

I'm fond of VMware Player. Other folks like Virtualbox. Both are free and will work just fine, though I've never used them on Windows 8.

 

You can install almost any old Windows OS. Win 95, 98, ME, 2000, XP, probably even NT should all work. If you have a choice, go with XP. If you can't do that, go with 2000 or 98.