I also have some noise in those audio effects.

Other than that I did not change those hwsurface and doublebuf settings, they are both set to 1 here.
Also I did change the resolution to 800x600 and the game seem to run quite well.

There is a small graphis glitch at the start when selecting your character, the window will not show the character, only a square purple filled area. The same is the case for what I asume is suposed to be a preview when selecting a saved game to load.