So I just bought DK2 and I installed it. When I launched the game the screen only showed the Dungeon Keeper "It's good to be bad" frame which as I remember is just before the bullfrog logo animation and the cutscene with the Stone Knights. I can hear the cutscenes and if I press keys they will be skipped and I can hear the main menu music. Whenever I Alt+Tab it shows a new frame, however it is frozen on that frame and the game is unplayable.

If anyone could advise me on how to fix this problem it would help. Thanks.

Try starting the game directly with ..\Dungeon Keeper 2\DKII.exe and not the Desktop shortcut or any other executable (like DKII-DX.exe).

If the game starts with DKII.EXE, but you get a black background in the main menu or a crash, hardware acceleration might not work properly, so we switch to software mode.
- Quit the game and open regedit (press Windows-Key + R to open the run dialog and enter regedit)
- Go to HKEY_CURRENT_USER\Software\Bullfrog Productions Ltd\Dungeon Keeper II\Configuration\Video
- Set "Engine Id" to "4"
- Set "Screen Hardware3D" to "0"
- Restart the game and check if it's running.

It could also be that the intro movie itself is causing the problem. Check this out, by deactivating it. Simply rename the "Movies" folder in ..Dungeon Keeper 2\Data\ to skip it.