OldFatGuy: (...) But I did find a file called something like DOSBOX configurator (or something like that). So I double clicked that and right there in front of me was a box to toggle full screen on/off. lol
BUT, I didn't toggle it off. Instead I tried another approach. In addition to the fullscreen toggle, there was a drop down box with various graphics options (Overlay, Surface, DDraw, OpenGL, etc.). So instead I tried changing that from Overlay to OpenGL. And fortunately (or unfortunately) that did indeed "move" the image down. When I went back into the game the picture was now noticeably lower, and there was no vast black nothingness at the bottome.
Unfortunately, there was now a vast black nothingness at the top now.... lol.
(...)
Try enabling "Keep aspect ratio" in the DOSBox configurator (probably in a second tab within it). Almost all games should have it enabled to appear as they did in 4:3 resolutions/monitors, but for some reason GOG decides not to enable it by default.
Also enable any options to keep the aspect ratio in your video card driver configuration, as Lostinablock already suggested.
BTW, if you had posted in the Krondor series forum, I'd likely answer, and quickly. It was quite rare for me to see this topic on the other hand, since I rarely drop by General. Almost all popular games have one or two "resident" troubleshooters. So even if there are few posts overall, questions get quick answers anyway.
Tauto: So, it plays okay on win 10? Another question, is the sound okay because on win 7 it played up?
You probably should play around with Blocksize and Prebuffer numbers to solve that. It's not so much a game issue as it is of the combination of the game and DOSBox (and the numbers GOG decided to place there by default).