For infinite lives in this game, use the DOS utility DEBUG.  
First backup your game, then type the following from the 
DOS prompt:

ren alley.com cheater.cht
debug cheater.cht
e 134e 90 90 90 90
e 2126 90 90 90 90
e 223e 90 90 90 90
Then type:
w
q

Then rename CHEATER.CHT back to its previous name.