I used Virtual CloneDrive too, and while I'm not completely sure what's going on with my computer, it's working and the game boots up, the script is in English...
Daemon Tools Lite just doesn't work well with Windows 7, I think. Also, it didn't recognize the .img file, although it did work once I renamed it to togainunochi.iso (it even showed the install screen and everything). Now, time to re-enjoy TNC! Thank you to everyone for helping!