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Quick Fix - Replace ddraw.dll in your "Warcraft II BNE" folder with a copy of the one from "C:\WINNT\System32\". Run "Warcraft II BNE.exe" instead of the Launcher.

Other details that might be pertinent:
SP4 was installed.
Patch Rollup 1 was installed (~30MB collection of post service-pack patches)
I had installed Directx 9.0c previously
WC2 ddraw.dll was much larger (1.7M) than the system32 version (259K)

Anyways the InitializeSListHead error really threw me at first, but the dialog window after that mentions ddraw.dll and this seemed to do the trick if you want to run it on an older setup.
Post edited March 01, 2020 by coweater
Thank you @coweater for sharing this fix to get Warcraft II running on Windows 2000. It works like a charm!