Simply copy Release_2004/d3d8.dll to your game directory Download.
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Simply copy Release_2005/dinput8.dll to your game directory Download.
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As of July, 15 of 2017 you no longer need to modify the hosts file to point to OpenSpy's servers since that's done internally from this point onwards. The D3D8 wrapper is based off sh2proxy, originally being a D3D8 wrapper and patcher for Silent Hill 2, thanks to them for the wrapper.