Knights and Merchants meets Windows 7 :-)
Years ago I played Knight and Merchants, and found recently your web site. I downloaded 1.60 Patch (Service Release 3) and installered without any problems at my Acer Laptop with Windows Vista Home Premium SP1. My desktop computer was running Windows XP, but due to the lack of perfect support to my dual-core processor, motherboard chipset and graphics adaptor, I changed to Windows 7 Release Candiate, bulid 7100.
K&M w 1.60 Patch (Service Release 3) ran perfect at my laptop with Vista.
In Windows 7 some weird problems occurred. The game was lagging a bit, slow startup-state and some colour problems inside the game.
I havent found a some sort of screenshot or screen recorder, which can capture these bugs. Well, I can record but the result isnt as Im seeing on the screen

800x600 - Running perfect.
1024x768 - Colour problems and serious lagging.
1280x1024 - Colour problems and serious lagging.
Informations from Dxdiag:
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System Information
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Time of this report: 5/23/2009, 23:45:10
Machine name: THOMAS321-PC
Operating System: Windows 7 Ultimate 64-bit (6.1, Build 7100) (7100.winmain_win7rc.090421-1700)
Language: Danish (Regional Setting: Danish)
System Manufacturer: GBT___
System Model: NVDAACPI
BIOS: Award Modular BIOS v6.00PG
Processor: AMD Athlon(tm) 64 X2 Dual Core Processor 4200+ (2 CPUs), ~2.2GHz
Memory: 2048MB RAM
Available OS Memory: 2048MB RAM
Page File: 1602MB used, 2492MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7100.0000 32bit Unicode
Any solutions or Im just unlucky?