MDS, MD0, and MD1 these are CD/DVD file made by alcohol software. You can use Daemon tools to open it. I dont kwon exactly what you got from message. So, you sould post screenshot it for help.
Um...It seems your PC do not set to Japanese Unicode properly, that is why Japanese characters in readme file only show question marks or so...You can take a look at this Guide, it will solve your problem :)
About d3dx9_42.dll, you can download missing files at www.dll-files.com/, extract and put it into game folder, then you can run the game ^^