Are you shutting down all non-essential programs (especially anti-virus) before starting the game?

Try running the game as administrator, and in the compatibility options disable desktop composition (in Vista/7).

A quick google search brought up an old topic for a different game and Vista SP1 where people recommended updating/re-installing sound and graphics drivers. One person reported getting the game to work by disabling visual themes in the compatibility options.

StackHash and Application Crashes on Windows - "Here’s how 99 percent of Vista users can fix a StackHash failure."

Stackhash APPCRASH problem: techsupportforum / tomshardware


[PC] Support FAQ - The Dragon Knight Saga

Try emailing support@larian.com, with a description of the problem and maybe a link to this topic (see the DKS support page).