I had the very same graphical issues on my Win7 Starter netbook and can confirm that changing the graphic mode fixed it for me. You have to do it manually though and separately for each game, in the way envisaged0ne described (using the Graphic Mode Setup .exe in the main SQ folder didn't make any difference).
The sound stuttering and occasional crackling or lag is a general issue I have with DOSBox. I think it's either due to sub-par config settings (there are a few advices spread over the forum for changing GOG's config files to a more ideal setup, playing around with cycles etc. - maybe someone else can point you to it?) or due to our rigs not being powerful enough to run DOSBox emulation smoothly (yeah, I know, it's ironic). Anyway, I think changing output to ddraw even reduces the common sound issues to a minimum. I'll keep that suggestion in mind for all my other DOSBox games from GOG. Thanks, envisaged0ne! :)
Post edited December 14, 2011 by Leroux