Icewind Dale II runs on new Windows machines but you might notice that it suffers from lag issues (not running at a steady 30fps) this is due to the removal of hardware acceleration. This issue can be resolved by downloading the Microsoft compatibility toolkit:
http://tinyurl.com/3u6hkt6
and enabling forced direct draw emulation.

Here's a video explaining how to do it all specifically for Icewind Dale II. http://www.youtube.com/watch?v=xQamKGzjsZg
Now go any enjoy the game the way it was meant to be played! Lag free!

Does this improve the Fog of War effect to how it looked in IWD?

Thank you for this, Flyboy.

I haven't played the first IWD...so I don't have an answer to that. :/ No problem. I had to search high and low to find the fix for this game. Once I found it I decided that it was important enough to let as many people as possible know about this so they could also fully enjoy it. Is there a way to contact the mods to request a thread to be sticky-d?