This didn't appear to be a RAR file, just a standard zip. It installed and runs okay for me, but I'm not keeping it as I've seen better bowling alley games. (I know, I hate when someone says that but doesn't offer links... will try to find some) Yes, Wabbit... I love Elfbowling! :-)
FWIW, that same wood42.jpg is in all 4 CLUB folders. Couldn't they find 3 more woodgrain textures? It worked for me, so either your file's corrupted or maybe your video card doesn't like the game? Have you tried opening it in Windows' Picture Manager? Search for all 4 jpgs, try opening them all and see if one won't open and replace it. Or maybe try reinstall.
I'm not sure why the developer of this game (and at least one other recent game) utilizes such primitive navigation. Once inside an alley, I find no direct link to exit/save/options and have to resort to the bloody ESC key just to get to the Options screen. Have I mentioned that I LOATHE !&#~ games that only work full screen and fail to provide a windowed option?
The Music Folder contains a single MP3 file, not of music, but of some beerswilling dudes yelling at the players. I shudder to think what kind of file this software would use if there was a Windows option for Smellovision. "StinkyFeet.noz"?