**UPDATE: While this post is still relevant and works, especially the troubleshooting part, I've found a new build of DOSBox that works significantly better with glide for this game. Linked is an updated install guide for that. This post is kept for the simple fact that it may work better for other people, and as I said, the troubleshooting is still relevant.
https://www.gog.com/forum/lands_of_lore_series/lands_of_lore_2_glide_and_general_configuration_guide_plus_troubleshooting/post5 *

I recently noticed that there was a new release of nglide that supported Vulkan. This inspired me to finally do a complete playthrough of the game in glide mode. I thought I would share how to configure the game to use glide and some better settings for sound and performance, as well as the solutions for some commonly run into issues. Many of the changes listed are from other topics in this forum and some are my own, however I thought it would be nice to have them all in one place. Enjoy!

GLIDE WRAPPER
Download Newest Nglide 2.0 (Now with Vulkan!) http://www.zeus-software.com/downloads/nglide
OR
Alternatively try dgVoodoo2 (May do better windowed support) http://dege.freeweb.hu/

DON'T install, instead open with 7-Zip/or similar and EXTRACT to your Lands Of Lore 2\DOSBOX directory
REPLACE the files when Windows asks

RUN nglide_config (dgVoodoo2's config is dgVoodooCpl.exe)
Choose Video backend (Vulkan may be faster if your video card supports it (multi-cpu support))
Choose Screen resolution (Should be a multiple of 4:3, my laptop ran well on 1024x768)

Optional - Adjust (for better quality!) your global (or Dosbox) video settings for antialiasing, FXAA, etc.

DOSBOX

In your Lands Of Lore 2 directory make a backup copy of dosboxLOL2_single.conf then open the original and REPLACE the contents with the following (file ends at 'exit'): Optional - Change windowresolution in dosboxLOL2_single.conf to a larger 4:3 resolution that your monitor supports.
Example windowresolution=1920x1200 or windowresolution=1440x900

MUSIC

Edit LOLSETUP.INI and REPLACE WITH Optional - For MUCH better sound quality download Virtual MIDI Synth https://coolsoft.altervista.org/en/virtualmidisynth
Download a few soundfonts.
WeedsGM3,Timbres of Heaven,Arachno.
I personally like WeedsGM3 or UHD http://forums.scummvm.org/viewtopic.php?t=14541&sid=85c72084baa407adf53aa4c27bce651f
Now RUN the configuration for Virtual MIDI Synth and load a soundfont
*Make Sure Virutal MIDI Synth is running on the taskbar with your Sounfont installed and enabled when playing!*
*If properly setup, Virtual MIDI Synth seems to launch automatically when launching dosbox*

Setup of Virtual MIDI Synth for DOSBOX (Important!)
In your Lands Of Lore 2\DOSBOX directory run dosbox.exe
in dosbox run 'mixer /listmidi'
take note of what number VirtualMIDISynth is (3 in my case, yours will likely be lower) then 'exit'
edit dosboxLOL2_single.conf and add your number to 'midiconfig='
For example midiconfig=3

RUNNING THE GAME

*If using Virtual MIDI Synth run it and load it's midi mixer off the taskbar to see the instruments that are playing*
*Easiest to see midi mixer in Windowed mode with Hardware Acceleration set to OFF*
*If using a laptop with a discrete 3d video card, make sure to enable it for this game!*

RUN 'Launch Lands Of Lore - Guardians of Destiny'
If this is the first time running the game, enjoy the cutscene. Once you gain control of Luther push 'ESC' to enter the menu

In the Menu Screen, choose 'Options'
Under 'Audio Controls' change Channels from 4 to 16
Under 'Hardware Acceleration' turn 'Acceleration' to ON. I also like 'Bilinear Filtering' OFF (Personal Choice!)

TROUBLESHOOTING

HELP! I crash to the desktop when chatting with Baccata in the Huline Jungle Cantina
When/If you get the Cantina crash to desktop bug, edit the dosboxLOL2_single.conf TO This should enable you to get past that scene. After saving past that point. Quit, reverse the changes to dosboxLOL2_single.conf.

You'll also need to reset texture cache to large in the game's video options, and may need to change graphics options back to high if you disable hardware acceleration

HELP! My screen is barely changing and my sound started sputtering
If you're getting major slowdowns when using the telepoters (try to find the one hidden in the Draracle's Museum!), switch 'Acceleration' to OFF in the game options before using one.

The updated DOSBox ECE build seems to avoid the worst of this bug https://www.gog.com/forum/lands_of_lore_series/lands_of_lore_2_glide_and_general_configuration_guide_plus_troubleshooting/post5

HELP! My audio is stuttering badly during cutscenes
Try editing blocksize in dosboxLOL2_single.conf. 1024 was the orignal value, 2048 fixed it for me

HELP! I want to play in Windowed Mode using Glide
Either
Try another glide wrapper. dgVoodoo2 gave my setup a good windowed mode but not fullscreen http://dege.freeweb.hu/
or use the updated DOSBox ECE build and set fullscreen=false in dosboxLOL2_single.conf

HELP! My mouse is stuck on the outside of the screen
Try not to move the mouse after launching Lands of Lore 2 until your first click on the screen that 'captures' it
Alternatively The DOSBox ECE build seems to miss this bug. The dgvoodoo2 wrapper may as well.

HELP! I'm following a certain hideous statue that keeps walking back and forth instead of going places!
If the statue gets stuck in the Draconoid Ruins, you can just go ahead of it. The cut scene will play upon entering the correct location.

Thanks for all the tips! Say, I don't suppose Glide actually improves performance does it? So if I'm on a low-end laptop, I should skip it shouldn't I? Do you know if surface mode is fastest otherwise?

Also is there a particular need to not keep -lomem after talking to Baccata? How does that affect performance if you are able to tell.

Unfortunately, Glide does have quite the negative impact on performance. That being said, my laptop can run glide mode using either the intel chipset or the dedicated (nvidia) one. It's just that the nvidia runs a bit smoother and looks considerably better. If you want better performance, you can always try lowering the video resolution in the nglide configuration. More than likely you'll be able to play it with a decent frame rate!

From what I gather, the biggest difference between the surface and overlay video modes is that overlay supports the use of filters and aspect correction. I don't know if there would be much difference in performance, as long as your computer can run the mode without crashing. (Though for general usage of dosbox, ie not glide, certain filters like hq2x can be very cpu intensive)

I did have a run of the game where i forgot to remove the -lomem for a bit. I wasn't using glide at that time and not only were the graphics much worse, but if too many enemies were on the screen I had terrible slowdowns. I heartily recommend removing it and changing the graphics back to the high settings after passing the Baccata bug!

Thanks for the answer! Unfortunately that lappy of mine was pretty cheap and isn't the newest either so... it is what it is.

So a new-ish build of DOSBox known as DOSBox ECE is currently being developed and includes a glide patch (kekko's) that works very well with Lands of Lore 2. Kekko's glide patch sends all of it's data to opengl internally however, so glide wrappers are not used and will not work with this. Unfortunately this means that you cannot change the resolution or filtering options in dosbox. It appears as though changes to the windows video settings (like the nvidia control panel) MIGHT change filtering etc. but may also add graphical errors.
The best thing about this build though is that transporters work much better, you only get a couple seconds of stuttering before things become playable again. Windowed mode is also fairly easy to access, though again, you're stuck with the original resolution. Fluidsynth is already patched in if you want to use a soundfont, or you can still use VirtualMidiSynth

*Please note that this is for windows, apparently if you use linux the glide patch may not work at this time, look at the DOSBox ECE VORGONS forum for more info*

INSTALLATION (Assuming a new installation)

DOSBOX
Download DOSBox ECE https://blog.yesterplay80.net/dosbox-ece-en/ (I'm using DOSBox ECE r4132.7z as of writing)
Make a backup copy of your current Lands Of Lore2\DOSBOX folder (DOSBox_old for example)
Unpack and REPLACE the contents of your Lands Of Lore 2\DOSBOX with the new DOSBox ECE

Now we need to get a glide2x.ovl file. Normally this is included with a game that uses glide, but the GOG installation seems to be missing it :(. DO NOT USE the one in the originally included DOSBox folder or any glide wrapper as these are designed to work with that wrapper ONLY.
I've found 2 possibilities that work LANDS OF LORE 2 CONFIGURATION FILES
In your Lands Of Lore 2 directory make a backup copy of dosboxLOL2_single.conf then open the original and REPLACE the contents with the following: MUSIC
Here you have a choice to make.
You can avoid the rest of this section and stick with the GOG default.
You can switch to the excellent sounding digital soundtrack in the lands of lore 2 configuration menu and skip the rest of this section (Apparently has 1 scratchy sounding soundtrack, and music may not loop. But I haven't confirmed this personally).
You can make the following changes and try listening to the soundtrack with an excellent MIDI soundfont.
Or you can make the following changes and compare the soundfonts to the digital soundtrack at your discretion.

Edit LOLSETUP.INI in the Lands of Lore 2 directory and REPLACE WITH As philscomputerlab.com says there is no best soundfont, think of them as a collection of different kinds of instruments. It's best to try multiple and see what you like!
Download some soundfonts and install them to an easy to access folder like c:\midi or something similar
Some popular soundfonts include:
WeedsGM3 http://www.un4seen.com/download.php?extra/WeedsGM3 (The exe must be run to extract the sf2 file)
Timbres of Heaven (Seems to fit the mood of the game well in later areas) http://midkar.com/soundfonts/
UHD3 http://forums.scummvm.org/viewtopic.php?t=14541&sid=85c72084baa407adf53aa4c27bce651f
SC-55 https://www.doomworld.com/forum/topic/91038-what-is-the-best-sc-55-soundfont/ (Must be unpacked)
This Site has weedsGM3 and more https://www.philscomputerlab.com/general-midi-and-soundfonts.html

Now it's time to point DOSBox to one of your new soundfonts. You can either use the built in fluidsynth (Quick) or Install VirtualMidiSynth (more options, simple GUI)

If you choose to use the patched in fluidsynth If you choose to use VirtualMidiSynth RUNNING THE GAME

*If using a laptop with a discrete 3d video card, make sure to enable it for this game!*

RUN 'Launch Lands Of Lore - Guardians of Destiny'
If this is the first time running the game, enjoy the cutscene. Once you gain control of Luther push 'ESC' to enter the menu

In the Menu Screen, choose 'Options'
Under 'Audio Controls' change Channels from 4 to 16
Either keep music type on MIDI (if using soundfonts) or switch it to digital

Under 'Hardware Acceleration' turn 'Acceleration' to ON.
Turn OFF 'Bilinear Filtering' (causes artifacts around structures on my setup)

Enjoy!

*If the game runs a bit jerkily try setting voodoo=opengl in the dosboxLOL2_single.conf. You can also try setting variable frame rate to 'yes' when in the Lands of Lore 2 'Video Controls' menu*

I followed these instructions, and the result runs very well. I mainly wanted to make this post as an update that the link to Dosbox ECE above does not work. Here is an up to date link: https://dosboxece.yesterplay.net/en/

Thanks for the great information! I tried the new DOSBOX ECE installation as described above and it seems to work fine. Only minor slowdowns here and there. But a somewhat annoying thing is, that with hardware acceleration enabled i get a flickering mouse cursor in game. It's very distracting unfortunatley. Does anyone know possible fixes for this?

I found the best way is to use the original dosbox and replace the glide2x.dll with the one that comes with dgvoodoo 2.63 or later: 3dfx/x86/glide2x.dll

Play in full screen and desktop resolution. I got very good performances (no slowdown or barely noticieable) and no flickering.

When you say original dosbox you mean the dosbox version it comes with the lol2 gog installation by default? or the normal dosbox?

Exactly: the dosbox that is included in the GOG installer.

Substitute the glide2x.dll with the one that comes with dgvoodoo 2.63, or later, from the folder: 3dfx/x86/glide2x.dll

Ok thanks I will try.

Thanks for the tip, but didn't work for me, unfortunately. Still slow as hell.

:( sorry to hear.

Try other dosbox versions that support a glider and differnt glide versions.

For teleporter bug, I have found a solution here
https://www.vogons.org/viewtopic.php?f=59&t=87508&p=1074440#p1074440

Use dosbox ece 4466 + dgvoodoo 2. In dgvoodoo 2 options, use voodoo graphics card with 1024kb memory size instead of voodoo 2 and 2048 kb size.