I have done some testing with it now and the game runs quite well and I can get music to work. Now if I turn music off then sounds work, but I can't seem to get both working at the same time. Anyone have any clues on why this is?

Using all the default settings though I disabled gus in dosbox.
sb16 (220, 7, 1)
General Midi (330)

Note I also tried using sb16FM same problem.

System specs:
AMD 3000+
Nforce 2 mobo delux (IE it has dolby encoding 5.1 out)
1gig ram
XFX GForce 6600 GT