About the Fullscreen Crash:
Unreal2.ini --> [D3DDrv.D3DRenderDevice]
ReduceMouseLag=False


Would you rather D3D9 than D3D8
enbdev.com/download_convertor_dx8todx9

I can´t post links full links.

Download and copy the files into Unreal 2 System Folder.
Unreal2.ini --> [D3DDrv.D3DRenderDevice]
UseCubemaps=False
Now you can play it in D3d9.

Unreal 2 not working in fullscreen even with ReduceMouseLag=False. I did it but the game still won't work on fullscreen.
I don't have unreal2.ini so I had to go to default.

I got this off steam:
Hi, try this, open SteamLibrary\steamapps\common\Unreal II The Awakening\System\Unreal2.ini and here find and replace ReduceMouseLag=True on ReduceMouseLag=False.
maybe will work it :-)
It works.... I couldn't get Unreal 2 to work on windows 10 until I did this.
Click on the unreal folder (where ever you have it installed) Click on the system folder. Look for unreal config file, which is located just below the Unreal 2 execute icon. Open the config file look for the line ReduceMouseLag=True.
It is past the middle of the page....trust me it is there....but may take a while to find.
Now simply change to False. It should read ReduceMouseLag=False. As always backup your config file.