The game requires a joystick or controller to play. If you don't have one, the XWA Upgrade Mega Patch includes a configurator for joystick emulation.
X-wing Alliance Upgrade - Battle 7 - Mission 1 - Battle of Endor Plik: star.wars.xwing.alliance.zip ...
If your ship won't launch, ensure your controller is properly mapped in the Windows "Game Controllers" settings. The game requires a joystick or controller to play