Dragons: Hi again, I can take away 16 bits now but it doesn't work anyway. And i have tried all compabilitys that are and no one works :(
Azilut: GOG staff have officially stated that the game does not work on Win8. If you do figure out a solution I'm sure they'd love to hear about it, but it sounds like even they weren't able to get it running.
Since I'm a Linux guy - it's business as usual. :p
Well concerning the problem, as far as I can guess it's caused by the transparency of the pictures.
At least the 8 bit mode worked originally for me. 16 bit is tricky but does also work: I renamed the PX16 folder (located in the data folder of the game) into PX08 and just renamed the original PX08 into PX08_backup.
What happens? Right the game is always starting in 8 bit, using the 16 bit textures. Why it's working for me on Linux it's another story. :D
Getting back to the topic - it seems to me, as mentioned before, that Windows 8 has a similar problem.
You could try this rename trick - but since none of these modes before worked, I guess there is no big chance of success.
Could you maybe throw in some screen shots that I can proof at least my theory?
Maybe one from the menu and one from the actual field of play.
I could give it a shot on W8 while I'm at work, but this should take some time since I'm pretty busy there.