*sigh*
After you've installed VDMSound 2.04, copy the files from the 2.04 Update zipfile at
http://vdmsound.sourceforge.net/files/
on top of the original files (wherever you installed them).
Then download and install the GUI Launcher VDMSLaunchPad.v1.0.0.7, also at :
http://vdmsound.sourceforge.net/files/
Log off, then Log back on.
Now when you right click on the game's executable, you should see two "run with VDMS" entries. Choose the one with the little musical note. Choose the default configuration, then continue on until it starts (you'll pobably need to switch off the hint messages).
If you need to adjust the configuration, you can always do it later by changing the properties in you WOLF3D.VLP file (much like a PIF file, but better).