I have the same issue. It's likely that our copies are corrupted.

set t2dir=blah

blah=pathtoturrincan2.exe\cfg
before starting the game

(example:

set t2dir=c:\cfg
t2.exe

Holy ****. I've been wanting to play my copy for 7 years! Now it works! Thanks Qbix!

or install the game in
c:\turrican\

It looks there by default. (it looks for c:\turrican\turrican.cfg)

Thanks Qbix!

It helped... partially. The game actually runs now, at first it shows Turrican logo in wrong palette but then (after some "cycles" changing) the logo appears again in correct colors and I can start the game. The sound works fine too but there is one more glitch. When I try switching to full screen DOSBox hangs with an error message (see pic). Is there any workaround for this?

Your video card seems to be the problem. You could try to play with output settings (output=, fullfixed/fullresolution, scaler and so on) in dosbox.conf, you'll need a little patience for that, I guess. If your card is real old, it may simply be too old - if it's rather new, you may have strange driver settings (common with flat displays). In any case, try various output settings, resolutions and so on.

Thanks `Moe`!

I tried playing with those parameters a bit. I've set "fullfixed=true" and "output=ddraw" and the game runs on fullscreen. The only thing that bugs me now is that the scrolling is rather slow sometimes, maybe it's because of the sound but when I lower the frequency the game hangs and if I turn the sound off the game doesn't start at all. Strange. Anyway I'd be eager to see if there is a way to speed the game up.

somewebsite says cycles 3300 and blocksize 2048

Yeah, it's better now! Thanks.