Hey man, there are a lot of solutions for this problem, best thing to do is just google "Application Error 0xc0000022" and try the solutions that suits you best. Here are some suggestions though.
http://www.youtube.com/watch?v=grvvwRILpjM
http://www.dllsuite.net/QA/Application_Error_0xc0000022_Exe_Files/

None of the solutions that I've seen helped. The links above pointed to permission issues and security settings which are not relevant to me.

The "Application initialization Error 0xc0000022" is actually not a message displayed by DKII, but by your operating system.

The OS loaded executable file of DKII, placed it into memory, and started preparations to execute its code - but then something went wrong.

Windows has very weak logging abilities, so your only option is really guessing what the cause might be.

Still, this problem almost always is caused by incompatibility of DLL files.

Contact support - that's a good hint, but in the meantime try using some kind of tool which displays what DLL files the game tries to load.

mefistotelis is right, that it also could be a DLL problem, so I'd check your system. Did you update from Windows 8 to 8.1? Maybe some things didn't update correctly.

I'd try running a system file check (SFC), even if it can take hours (be prepared).
- Open a command prompt (cmd.exe) with admin rights
- Run this command: sfc /scannow
- Wait till it's done
- Reboot your PC

Now I'd run Deployment Image Servicing and Management (DISM) and check if other installed packages or Windows features are corrupt
- Open a command prompt (cmd.exe) with admin rights
- Run this command: Dism /Online /Cleanup-Image /RestoreHealth
- Wait till it's done
- Reboot your PC
- (you could run the above mentioned "sfc /scannow" again, but I'd try running the game now first)

Also make sure DirectX9 is correctly installed on your system. Install this:
http://www.microsoft.com/en-us/download/details.aspx?id=8109

Un-install and re-installl DKII. Don't install it into the Program Files or Program Files (x86) folder, but into a custom one, like C:\GOG-Games\Dungeon Keeper 2\

Now check DKII

If it still crashes with the same error, try running it in Compatibility Mode and if it still doesn't run, try running it as Administrator.

Thanks, I'll give it a look tonight.

Still no luck.

Here is my dxdiag report.

speedyshare dot com/3XHyu/DxDiag.txt

Thanks

Download from the link below and copy/paste all files that are inside either folder 1 or folder 2 into the base dungeon keeper 2 directory. Attempt with folder 1 dlls first, then try folder 2.


https://keeperklan.com/attachment.php?attachmentid=1348&d=1392479288

also, someone mentioned this has to be done once the dll fix has been applied
Adding keeperfx.exe in DEP is still required, if not, you can't start a new game or go to options in start screen.

I have no clue if this work will for you as I cant test it, Sorry to say but a virus has ruined your computers integrity. only fix is a reinstall of the os, hopefully this is the only problem you will face.

Credit goes to Dave at keeperklan for compiling the dll download, thread can be found here
[url=https://keeperklan.com/threads/4501-KeeperFx-Windows-8-1-x64-The-application-failed-to-initialize-properly-(0xc0000022]https://keeperklan.com/threads/4501-KeeperFx-Windows-8-1-x64-The-application-failed-to-initialize-properly-(0xc0000022[/url])

IT WORKS!

Thank you so much for posting, and thanks to Dave from KeeperKlan!

Very happy!!

I also had this issue for a long time. What finally solved it for me was manually enabling DirectPlay in Windows 10. Now Dungeon Keeper 2 runs just fine :)

Thanks a lot, that fixed it for me as well :-)

This fixed the issue for me on Windows 10 64bit. Open the start menu and type "control panel", then click "programs and features", then "turn windows components on and off", then expand "Legacy Components", and put a check in "DirectPlay". Hit OK a bunch and DK2 starts fine for me.

Same here, Enable directplay and it works on win10 x64. I didn't have to use any compatibility mode either.

Guess they used Directplay but didn't check for its existance first and throw a custom exception if it wasn't found.

Thank you! :D