That is my feeling, too. Exult may become the answer for U7, but will need another solution for other games.
I have received a reply from Support and hope to have this solved by the weekend -- and there's no question that the help offered on this board has better focused my inquiries to Support.

Thanks and Merry Christmas.

Glenn

I hope the can give you a proper solution, especially for all the other games. Would you be so kind to post it here? I'd be interested in what they propose.
Take care and Merry Christmas to you too!

This is what Support recommended. It did not solve the problem -- yet. I completed Steps 1-3 and 5 with no trouble, but Intel advised against updating my graphics device driver. Another update involving my Chipset, is possible, but first will require that I manually uninstall the prior Chipset. Don't know if that will be decisive.


Please try these troubleshooting steps:
1) Please make sure that you use "Run as Administrator" to install and to start the game (right-click on the shortcut or setup file and select "Run as Administrator"). If you are using Galaxy, then make sure to run Galaxy as Administrator.

2) Please reinstall the game AND add it to your anti-virus/firewall software's exception/trusted list. Simply disabling firewall or AV software could not be enough, since some of these software are running still in background or in services list. If you are using Galaxy, then please add Galaxy as well.

3) Reinstall the June 2010 DirectX runtime package. You can find the archive file containing the 2010 package installation files here:
http://www.microsoft.com/en-us/download/details.aspx?id=8109

After that please download and install DirectX Web Installer:
https://www.microsoft.com/en-gb/download/details.aspx?id=35&e6b34bbe-475b-1abd-2c51-b5034bcdd6d2

You will have to extract the files into some folder, then open that folder and launch the DXSETUP.exe file in order to proceed with the installation.

4) Please update your graphics device drivers:
http://www.intel.com/p/en_US/support

5) Please go to the game installation folder (default: C:\GOG Games\game-title\), find and run Dosbox Configurator/Graphics Settings. In configuration tool please select:

Graphics Mode: OpenGL
Fullscreen: Unchecked

Go to Advanced Options.
Windowed Mode: Select 1280x720 or resolution close to your display resolution.

Press Save and close. Now try to run the game from desktop shortcut.

Regards,
Dr Cat
Customer Support Representative
GOG.com

Most of this tipps are standard troubleshooting-solutions, most of them useless imho. I heavily doubt that an updated graphic cards-driver will solve anything here.
Step 5 sounds the most promising, have you tried that one?

edit: ah, ok, you've tried it, sorry. ;)

Bringing your graphic card drivers up to date seldom hurts, but I would follow Gydion's advice and try to use some other keyboard driver.

Thanks again.
I don't have an "ultimate" solution, but greatly appreciate the time and care you and Stryx have invested in helping me understand more, eliminate some variables, adjust my expectations about other variables and to give me more confidence in such other alternatives as Exult and "pure" DOSBox.

The final (?) suggestion from Support was to do a "clean boot."
I have declined GOG's gracious offer for a store credit, as I can use the U7 I purchased as the foundation for Exult.

I hope you have a healthy and prosperous New Year.

Cheers,
Glenn

"Pure" DOSBox won't work presuming it is the SDL bug. Though it would only take a moment to install it and see.