I've tried all kinds of settings combinations - different resolutions, Direct3D on/off, windowed, stretch fullscreen, compatibility mode, run as administrator, windows compatibility mode. All to no avail.
Either I get a "Can't Initialize Disciples II." error, or I just get a black screen and the game never loads.
I love this game and really would love to play it again.

Update: Managed to get both Gallean's Return and Rise of the Elves working. Both needed to be run in Win 98 compatibility mode, and Gallean's Return had to be run in full-screen mode while Rise of the Elves will run in windowed mode, both with Direct3D enabled and compatibility off. Also, the games look like they are hung for sometimes up to about 30 seconds, but they eventually start.

In case someone is interested (there will be such people since the game is discounted): The same trick works for Windows 8 :D

For what it is worth, I have Win 7, 64 and I find that sometimes a fresh download followed by using the desktop icon after installation is all one needs to do to solve some of my launch problems. I, fortunately, did not have to touch any compatibility settings or color schemes or switch to basic etc. Just install and click desktop icon.

thanks for suggesting the W98 compatibility mod and 3d enabled and compatibility mode off in settings, it works ok , i can play Rise of the Elves in full screen also, the only difference between the two versions is that GR can launch only in 800x600 while RotE works in other resolutions also, i suppose every system works in its own way :), a big thanks anyway, i was quite annoyed with the "Can't initialize D2" message , considering i can play older games like HOMM3 on my comp without problems .