I don't have any problems moving the mouse but I have a stupid hard time trying to manipulate the objects in the world. I was trying to equip something and somehow managed to "steal" something and get attacked by guards. It wasn't pretty. It's as though the game doesn't register my click in the "click and drag".

Any idea what's going on? I'm in Windows Vista and running it as administrator.

Thanks for any help you can give me!

Does your mouse feel too fast or slow? You may edit dosboxULTIMA7.conf and change the mouse sensitivity setting
sensitivity=100 to either lower or higher setting.

Also, you may try to fiddle the emulation speed by changing the line cycles= XXXX to cycles=14000. Try different values between 8000 -> 20000 to get acceptable speed. But if I remember correctly, GOG version of U7 was already set to 14000 setting.

Try to change output=surface to output=ddraw. Also try to fiddle with scaler=xxxx (I personally like advinterp2x or advinterp3x scalers a lot). Those help with graphics settings, but also sometimes if the game is somehow unresponsive on one setting other setting might help.

Alternatively, you can play Ultima VII with Exult. It allows for better music, and adds some things like hot-keys.

My mouse is kind of too fast.

Often I'll click on something and it'll be like I double clicked on it. would changing sensitivity help it?