Having the exact same problem as first poster - installed fine, but when attempting to play I get the screen of horned reaper, then get a black window on my desktop which promptly then ends the program. Tried following the below advice from a previous thread but didn't help in the slightest... all help much welcomed.
"I found out how to solve this too. You need "Windows Applications compatibility Tools", I am using version 4.1. It is free to download from Micro$oft, so if you google for it like I did you won't have any problem finding it.
Before you start be sure you don't have changed anything on your *.exe file, such as set the compability to windows 95, if so change it back.
Now install the tool from Micro$oft and start by using "Compatadmin.exe"
1. Click on the "new" tab to make a new database, name it dungeon keeper 1
2. Right click on your new database and choose Create new -> Application fix...
3. Write Dungeon Keeper 1 for name of the program, Bullfrog for the vendor and then click the Browse button to find your dungeon keeper exe file such as "keepd3d.exe" or "Keeper95.exe". Then click next.
4. Choose "none" on the left list and click next.
5. You should have "EmulateHeap" turned on in this list, that is what you need to actually start the levels. You can also turn on "EmulateSlowCPU" although I have yet to see if this actually helps for something. Then click next and finish.
6. Save your database somewhere and then click on the "file" tab and choose "install"
It should now work fine." (It didn't!)