I don't think you should delete START.DAT, the setup options are in the SETUP.DAT file.

SETUP.EXE doesn't look at SETUP.DAT, it always defaults to speaker. Change the sound option by pressing space on it and then on "Done". If you look at what is written in SETUP.DAT, no distinction is made between AdLib and SB, and that is reflected in the game because there is only FM sound.

There are a few weak FM sfx here and there, and the anemic music only plays in option screens during the events.

It was a mistype on my part. I meant the setup.dat file.

Point is, when I select sound in setup.exe, and then hit done. Every time I start the game I get the same screechy beeping.

It seems I was not patient enough. Getting further in revealed actual sound.

Uh, I think that's all you're supposed to get. As I mentioned, the FM music in the options screens during the events works, although it's pretty spartan. Set pcspeaker=false and that should verify for you that what you're hearing is FM sfx.