Here is what you need to do:
Run install.exe either with VDMSound or DOSBox so it can auto-detect your sound card.
First thing you need to do is to select your sound card. Select Sound Blaster and continue.
Unless you have a joystick and wish to see if it works with the game, select no joystick.
Then Select IBM-compatible keyboard. You'll have to do this twice since an error message will appear. This is not a problem, but a mere notice. I recommend you read it tough.
Enter Y.
Hit ESC because you don't need to install the game.
You are done!
To play the game, only start KQ5.bat with either VDMSound or DOSBox. I tryied VDMSound and it worked flawlessly.
Have fun!