Darn it, such an old request and no reply. I'm having the same issue. When I run the game I see half a second of some cinematic and then I'm suddenly in the town. So I checked whether I could find the videos in the game's directory and indeed, I can just watch them in any media player. BUT I have the impression that not one of them resembles the images I see flashing up when I start a new game - so it seems I can't watch the intro. :/

There's two intro cinematics for Darkstone ... a short "title intro" and the other a somewhat longer one. Don't remember if they're both in the movie folder, but maybe that's the source of your confusion? They're on YouTube, btw. :)

First
Second

As to them not playing...I think you can get them to work in Wine these days, but not sure about Win7. When I was able to get the original disc game to run on Win7, I remember the Darkstone Won't Shine song audio wouldn't play (for me) when standing in center of town, but I think the movies worked.

Edit: Apparently the videos use the "Indeo 5" codec, so if you don't have that on your computer, maybe that's a reason?