If anyone here can't do this, you need to tun setup.exe with any version of Dosbox.

I will give you some commands to help you the reader :), there is an explanation after each of the following commands.

I suggest you take the Lands of Lore 1 folder and put it in your Local Disk, rename it something short like LOL1, take note of your hard drive's letter (most of the cases is C)

Open up Dosbox, type(press Enter after typing any of these commands):

Mount C C:\LOL1
Virtual drive C will now be your Lands of Lore 1 folder, now type:

C:\
You will now be in the virtual drive C, then type:

setup
That's it, setup will appear and ask you about your sound preferences.

Complete the setup, type:

exit
You will now exit Dosbox, rename your Lands of Lore 1 folder to well...Lands of Lore 1 of course! Put it back where it was originally and you are done.

Thanks for the midi tip!!!
Really sounds better now.

Also like the Graphical updaes with the direct3d shader, but I will prefer the original version.

To give this a bit of a better look just use (the surely well known dosbox tweaks):
fullresolution=0x0
output=ddraw
aspect=true
scaler=hq2x

Sounds so much better! Also used this to get better sound out of MM4and5! Wish GOG.com would ship with better sound presets for these games or some kind of front end to change the options.

The default Soundblaster sound is very choppy. Installing Munt and swithcing to Roland sound took some work, but it's worth it for the superior, non-choppy sound!