It sounds like you're missing the appropriate Visual C++ runtime libraries, these should normally be bundled with the game's own installer but as they are shipped with so many other applications it could be that they were missed? In any case, you could try installing them yourself...
The Dreamcast's PowerVR GPU is capable of order-independent transparency, allowing translucent surfaces to be blended correctly regardless of the order in which they were rendered (a feature missing from most other GPUs). This is an interesting article on this as it pertained to the Sonic...
I didn't encounter that conversation, however if you listen to the wiretap tape in Ren's hideout after the relevant clue you can
listen to a phone conversation between Joy and Guizhang Chen.
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