I finallly got the computer mode working in the first Battle Isle, but the computer side stops and then requests move mode or action mode and then simply does nothing. Am I supposed to push a key or do something to put the AI inot move or action mode? As of now it's unplaybale.

Yes, F1 if i'm correct. But the key is displayed on screen.

Requesting move or action mode means that the computer has finished its turn and is waiting for you to finish yours. You get the turn finished symbol yourself when you keep space pressed on an empty hex, press the left arrow key and release space afterwards.

You always start with the MOve-Mode, which means the Computer is in the attack-mode. But there ist nothing to attack in the first round, so it ends his turn immediately. But that means not that the KI ist doing nothin. Wait for Round 2 und you will see.