While Indy 4 can run in EGA mode (try it out by starting with "ATLANTIS E" -- type "ATLANTIS ?" to get a list of command line options), by default it'll run in VGA mode.
Copying the folder to the hard drive is not a good way to install.
Since I have the talkie version too, I just tried installing it and here's what I did:
Code:
mount c d:\oldstuff
mount d z:\ -t cdrom
d:
atlantis
(I have a folder called "oldstuff" on my D drive and my CD-ROM drive is Z in Windows). The above commands then start the installation procedure. Use the arrow keys to move the cursor down to "Sound Blaster & Compatibles / Adlib" and press Enter. Then move the cursor right to "Sound Blaster & Compatibles" and press Enter again. Accept the default port 220 (enter), IRQ 7 (enter). The press Escape and Y to save settings. In the menu that appears, press Enter to start the game.
If you later want to play the game again, just repeat the above commands (the game will then start immediately after typing "atlantis", as the configuration has been saved).