I just received my new laptop today with Windows 8 and didn't realize there was a TS2 problem with it until I tried to install it. I had the same problem most everyone else was having. Installed base game ok but when I tried to create a family or play an existing family, the game just hung. When I tried to install Nightlife or any other expansion I got the error message and it didn't install. I first tried to run in window mode (-w) and it didn't work. I then ran with different compatibilities (Vista, since this worked on my husband's laptop and XP SP2) as advised here and neither worked.
I then followed the advice given here to copy the TSBin and TSData files from my desktop to the new laptop via flash drive. I fired up the game and it still didn't work. So, I figured maybe it needed to go through the process of installing the next expansion so I exited the game and installed University. It installed with no problems so I started the game and finally it worked!
I just finished installing Nightlife with no problems, started up to make sure it still worked and it did so I'm going to continue on. I'll post an update when I get done with the rest. I know how frustrating it is to get this to work when it doesn't want to on whatever system you have. If this way doesn't work for you keep trying different things and stay on EA to get a normal solution to this! I'm glad to see so many people still playing TS2! Hopefully EA will realize they need to continue some type of support. Good luck!