Found this on the darklands.net FAQ. Don't know if it will help...

2.6 Running Darklands in Windows NT/2000 […]
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2.6 Running Darklands in Windows NT/2000

Under 2000 (and possibly NT), the memory settings have to be tweaked so that Win2K can simulate the memory types that Darklands needs. Simply right click on DARKLAND.EXE and choose "Properties". Select the "Memory" tab and adjust the settings like so:

Conventional (Total) - 640
Conventional (Initial enviroment) - 1024
Expanded (EMS) memory -16384
Extended (XMS) - none
MS-DOS protected - 6144

Doesn't work for me, but maybe the same/similar applies to XP in some cases. I have to run through Dogbox myself... 🙁