I have a problem when starting the game.
It says:
"Failed to create palette files: levels\towndata\town.pal."
I DID put the diabat.mpq file into the folder and I have no idea how to fix the problem. I tried to run in administrator mode. or Windows XP mode. I tried everything, but the error appears every time.
EDIT:
I use Windows7
Graphic card is NVidia GeForce GTX460
My friend have Windows 7 and he can't run the game too. Same error that you have. I think it the Windows 7 issue for some reason. I have Windows 10 and it run fine. We using the same game copy. Like I said. Must be the Windows 7 issue.