Well, I seem to have found the problem, but don't know of an easy fix 🙁
I just spent the last 6 hours building a boot disk & cycling through 8 thumb drives to find one I could mount as a DOS 6 HDD to test the game on my main system. Ended up with HDD as F: for some reason, and the Blue-Ray burner as C:. Still haven't figured that out, but it boots and lets me install Undermountain onto my thumb drive, F:, without any problem. The game then loads up and plays just fine, though I can't get the audio to work (no DOS drivers for the sound card.)
So, for some reason, the DVD burner on my DOS system isn't reading the disk correctly for whatever disk detection routine the game uses. As a final test, I copied the disk to the HDD & used FakeCD to mount it instead of my physical drive, and the game now works. However, I don't really want to use that method, though I'm not currently lacking drive space. If this was a "copy" I would suspect something like Thief uses, checking specifically for CD-R media type. I also don't have easy access to a drive to replace mine with for testing purposes.
So, the next question... Does anyone have any idea why my DVD drive is reacting incorrectly? I have tried booting without any TSR's loading except CD-ROM & Mouse. I've tried several mouse drivers, though I can't imagine how that would have anything to do with it. Does anyone know of any way to get it working from CD like its supposed to? If push comes to shove, I'll use the FakeCD method, though I find that a bit distasteful.