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I just bought the KQ 7+8 from GoG.

I have changed all of the compatibility settings:
So far, it works the best with:
Disable visual themes
Disable desktop composition
Disable display scaling on high DPI settings
Also, I am running it as an administrator.

When I load the game, the screen goes black, there is a small white bar in the upper left corner of my screen with gibberish in it, the sound plays, and the screen is still black. When I click the mouse, the screen changes to the menu. I have the Direct3D as the Graphics option. My sound is fine. If I click on Replay Intro, then the video for the intro plays with the sound timed correctly.

When I try to start a new game, the screen is black, with the subtitles writing over each other instead of disappearing for the next set of lines. The action and inventory bars also shake the entire time. If I try to click anywhere on the screen I am back on my desktop with the game still running, but minimized to my taskbar.

Help, please.
Thank you in advance to anyone who replies.
This question / problem has been solved by Bagginsimage
I can't help you with direct3d settings.

But I recommend downloading and using a glide option;

http://www.zeckensack.de/glide/

Nglide is supposed to work as well, although for whatever reason it won't on my computer.

With glide you'll get twice the resolution, and a few extra graphical bells and whistles.
Thank you for the help.

I'm using the zecensack glide. The scenes are a little choppy and has lag with my mouse, but at least I can somewhat play the game now.
Glad I could help...

GOG should incorporate glide option into the installation right out of the box like they did for a few other games like Undying.
Go into the graphic options and try disabling dynamic lighting. That can sometimes cause the choppiness in the game