This wouldn't post the first couple tries, so hopefully this isn't a triple post....
To get Windowed mode with glide likely depends on your machine, but this worked for me.
Download the newest nglide http://www.zeus-software.com/downloads/nglide
This version just added windowed mode.
I extracted the files through 7-zip into the Lands of Lore 2 directory, replacing the files as needed as opposed to using the installer
Try running Lands of Lore 2, if Alt-Enter switches to windowed mode you're good, otherwise you'll have to replace the dosbox version with another one (Like I had to)....
Find and download ykhwong dosbox svn build
Rename the DOSBOX folder in the Lands of Lore 2 directory to something like "DOSBOX_Original"
Install or extract the ykhwong dosbox svn build into Lands of Lore 2, in the DOSBOX folder (Rename to DOSBOX as necessary)
Extract the new nglide files into the new DOSBOX folder. Run Nglide_configurator.exe from DOSBOX folder. Change VSync and Screen Resolution as necessary.
Run Lands of Lore 2, hopefully it works!
If you need to return to the original Dosbox, in the Lands of Lore 2 folder rename DOSBOX to something like "DOSBOX_SVN" and rename "DOSBOX_Original" back to "DOSBOX"
Extras - Possible Performance Gains
edit the dosboxLOL2.conf file
Set cputype=pentium_mmx (Only Available with ykhwong dosbox svn build)
Set memsize=63 (Recommended by nglide)
If you cannot see in the Draracle's Museum, Run nglide_configurator.exe from DOSBOX folder and set gamma correction to 1.5 (Works better than in-game correction, but both can be played with). Then remember to light the torches with the spark spell (push 'n' to target)