I too was getting the error where my screen would flash white for a second before crashing back to the desktop. I finally discovered that the Configuration Utility does NOT disable the 3D sound, even if you checked the box. I had to go into my Registry to disable it. Once I did that, the game ran fine.From the Start menu, select Run. Open Regedit, then navigate to the following key:
HKEY_LOCAL_MACHINE\SOFTWARE\New World Computing\Might and Magic Day of the Destroyer\1.0
Double-click the Disable3DSound key and change the value to 1.
Close the registry editor and try the game again. Hope this works for you like it did for me.