Well, its finally fully ready to be played. It took few nights.
So I tried installing some of the drivers you recommended Dosraider. Windows crashed and refused to work from there on, so I had to re-install everything again (it even said that "re-install windows". Couldnt even access Safe mode or DOS command-line). The ATI driver was older and acted weirdly compared to the one on ATI site and I still had problems with the sounds. Did like the enhancements though, and the agent program.
Getting sound drivers to work was a real pain in the ass. I had couple of different drivers, namely one linked by Dosraider and other I found while surfing. The linked one makes me possible to configure my soundcard for some games (like Daggerfall) while DOS games dont have anykind of sound. With the other driver, it was the opposite. Windows games and sounds worked okay for both.
So then I figured it out. First, I need to download the latest for ESS M2E
http://h20000.www2.hp.com/bizsupport...kId=135&mode=3
And then the latest for Canyon3D, which was even more difficult to find.
http://driverzone.com/{a9ada7e6-61ba-474c-a8ff-24cdba5ab8a4}?id=1603111
But now, everything is finally set. Havent tried Space Quest yet, but I dont care at this point. At least majority of the stuff is finally working as it should be!
Thanks to GTX for helping me out with the sound.