Okay I found the problem - the batch file is meant to check the options you picked. The problem is, the copy from HOTU (which is also hosted on other sites) is messed up and has multiple options.
For example, if you want the game to be with music and sound and run the game from the A drive, the game will create a file called AMS.CFG. A stands for A drive, M for music and S for sound.
But there should only be ONE CFG file. When you alter the options, it will delete the old CFG and create a new one. Except, because there's two CFG files, AMS.CFG AND A.CFG, it will start the game without music and sound, because it will find A.CFG first. I hope this makes sense.
Basically, instead of using the batch file, use MERC NHMS to start the game.