The game in this case is the version 2.02J of Chaos Breaker (dumped version it's 2.02O). My progress so far:
Extracted the .chd as an .img (glorious 37GB), then tried various methods to open/extract it.
First used WinImage and extracted the 2 partitions it recognized. The first one has all the Windows and game data (the last in the TypeXsys folder). There's the "launcher.exe", wich searches for the USB dongle to decrypt the file "vdimg_ec.img" (where the game data actually is), then mount it as a virtual unit and finally executes "game.exe".
Here's the main problem: How to decrypt this file? I converted the .img to .vhd to give it a try in VirtualBox, but it shows only a black screen. I know that Windows Embedded is very specific when it comes to drivers and program execution/boot.
Also opened the .img on WinHex and it showed a third partition, but didn't recognized any files. Does the CHD includes the dongle? Maybe it's only possible to decrypt on real hardware?
I hope someone can clarify this to me.