I wrote this tutorial assuming that all of you have a legal copy of Kingpin: Life of Crime. Nothing should be too hard to follow, it's a pretty simple process; just a matter of putting things in the right place.
Step One: Installation and Patching
Place the Kingpin: Life of Crime CD into the CD drive and install the game. When it's all finished installing, download the latest patch for the game (found here) and open it up. When you open it, there should be a pop up window asking for the Kingpin directory. Assuming that you did the default installation and didn't change the directory, it should be "C:\Program Files\Kingpin\". When you've put that into the text area, click on the UnZip button. When that's done, your game is installed and completely up to date.
Step Two: Fixing the CD Read Error
Now from here, if you try to play the game, it will open up to the main menu and you can view all the options and stuff, but if you try to start playing, the game will close and give you an error (second screenshot). The way to fix this is very simple.
First, you have to download a crack which will disable the CD check in the game, enabling you to play without any errors, and without the CD for that matter; you can download it here.
After you have downloaded that WinRaR archive, open it up and extract the file to your Kingpin directory (explained in Step One). It's important that you extract it to the same folder as kingpin.exe because if you extract it anywhere else, the crack will not work and your game will still ask for a CD. So once you've extracted the crack to the Kingpin directory, open up the crack and click on the button that says "Patch".
You have successfully fixed your copy of Kingpin: Life of Crime and you will now be able to play on Windows XP! Happy murdering!