Try this: install alcohol again, and after installation open alcohol and go to file,options,virtual drive. Here you will see some text boxes, one named "Vendor Identification" (default value "AXV") and another named "Product Revision Level". (default value "2.0B").
Change these strings to something else (that does not contain the original strings).
Hit Ok, follow any instructions alcohol gives you, reboot if instructed.
After that, check and see whether your game runs with alcohol installed.
Another thought that crossed my mind while writing is the order of appearance of your CD/DVD drives (Virtual or not).
If Alcohol's virtual drive appears in windows explorer before the other CD/DVD drives in your system, then go to alcohol,file,options,virtual drive,drive letter and change the drive letter to something high (X,Y,Z for example).