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I hear music in other areas just fine. I hear the battlemusic too, but no ambient sound or music in the city itself. Conversations are fine, though.

Any ideas how to help this?
This question / problem has been solved by triockimage
Someone already asked similar question, not sure if it will help you though -
http://www.gog.com/forum/lionheart_legacy_of_the_crusader/game_music_or_lack_thereof
I seem to recall that there was music in Barcelona. Guess I remembered wrong. Thanks!