I had the exact same problem. And it actually does screw up the Clouds of Xeen intro as well. When I ran it a guy would appear on a scroll, state his name, and then the scroll would be rolled up and the intro would end. It's actually supposed to continue from there a bit.
Anyway, the way I got around this bug was very simple. I ran install and selected sound blaster pro as opposed to plain old sound blaster. For whatever reason it worked for me. You might want to give that a shot.
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