Lords of Magic works perfectly EXCEPT that rendering is corrupted when it is using DirectX "fast blitting"; they provide a software emulated workaround for some truly ancient cards (Matrox Mystique anyone?) and the game works well in this mode. But it should work properly in DirectX accelerated mode too.
The kind of corruption varies but it appears as, for instance, mouse trails which to me suggests some kind of co-ordinate system problem. The demo is here: ftp://ftp.sierra.com/pub/sierra/lordsofmagic/demos/si_lordsofmagic_demo.exe and it installs cleanly on the master branch. If any DirectDraw gurus want to take a look, please do! I bet this problem affects other games too.... thanks -mike