After playing MM7 for years on an old PC running windows 98, I finally decided to get it for my windows 8.1 PC on GOG. After playing for a bit, I've noticed that the sprites for upgraded enemies are not palette swapped as they should be (ex: fire dragonflies appear as normal dragonflies, Brent Filiant appears as a green soldier instead of red soldier, the red dragon in harmondale appears green, etc.). I've tried turning tinting on and off and restarting the game, to no avail. Any idea what might be causing this?

You need to launch Setup file and turn off Hardware rendering. It doesn't properly work with palettes in Hardware mode.

Is this also the case with MM8? I've been playing with hardware rendering on, and come to think of it, all dragons looked the same...

Wouldn't swear to it, but I don't think so. I think the dragons in MM8 really do just look alike.

I'm having a different bug with sprites now. Bookwyrm's sprite looks like a girl with glasses.

Try clicking on it, with the little magnifier. ;)