The problem occures from level 3 (level code AMGEFIN). After playing for a while the game hangs and the display gets full of colored squares and then white horizontal lines . There's nothing to do than a brute shutdown of Dosbox. Starting from level 4 by entering this level doesn't help because this bug occures on every level from level 3. It's quite annoying for me because BI2 and specially titan's legacy is the prefered BI of my father and i bought this pack as a present for him as easy to use. Anyone had or have this problem or know how to solve it? The system have the latest drivers forthe ati card and i'm is on windows 7 X64.
Thanks in advance
Erratum: The hangs occure from level 4 (code HASENOL) randomly during play.

Yup, over two years later, I just came across this very same problem. Such a disappointment after getting very excited about being able to play BI2 again (I completed BI2 the first time around, but never played Titan's Legacy until now)...

I got the problem on level 5 (WORINGA) which is especially inconvenient since it is a huge 100 turn mission. It's exactly as diskers describes: coloured squares and white lines, getting worse during the computers turn, then freezing up altogether when the computer players all end their turns. Once the crash happens once, it always happens at exactly the same point in the game each time I reload it from a previously saved position - even several turns ago. I tried messing about with the screen resolution (thinking it might be a graphics update glitch) but to no avail. I've had no other problems at all up to now - the game ran perfectly prior to this level.

Has anyone else had / fixed this problem?

Same Problem here. made it so far until mission 5 or 4? Its a very huge mission where you need to find the crash side of the alien ship and take some cities, where you start on the north-west island with many ships and have 100 turns to solve the mission. I'm at turn 18 and the game crashes always after this turn. i tried several graphic settings (ddraw, overlay etc.) nothing helps. i play it on "difficult" and it looks just like the others reported. the colours messing up and the mous freezes. please any help. i want to continue .... :-(

edit: i turned off showing the ingame-"battle" and it seems to work now. i will watch a little if thats the problem

Excellent! Thanks Billy336! It does appear to work. It even works if I just turn off the battle scenes for turn 18 and then put it back on afterwards. How bizarrre!