Like the more recent reviewers have wrote, this game indeed does work on more modern operating systems. It's a real shame it got bombed by people who did not get it to run on their windows 7 machines, but I can confirm it works on my latest and updated version of Windows 10 64-bit. Concerning the game; it's incredible. I consider it the best puzzle/adventure game ever made. I also recommend that people check out the making of video on youtube, to see the time and effort that went into making this masterpiece.
This is by far my favorite Heroes game. However, one thing that I have a problem with is the lack of opera tracks in audio. I remember them being there in the cities, but for this gog release, they are not. I think the gog forums have some fixes to implement the opera tracks, but it's still one more obnoxious step I have to do to get everything running 100% like it did back in the day. That being said, I still highly recommend it. This is still an incredible release and works well under Win10. It's very easy to waste hours in this game because of how addictive it can be.
