Hi,
Firstly (and I don't think this is the problem, I'm just mentioning that..) an
official patch for this game is available to update it to version 2.2 ...see;
http://www.softwarepatch.com/games/dungeonsiege2.html
Now the hard stuff.....are you using Mac/OSX? Even if you're not, the
following would apply...
Apparently it seems the disc based version of this title incorporates
a DRM copy protection mechanism. Due to the design on the Mac OSX
scsi drivers, these systems do not work on the Mac (and many don't
work in linux either even though the linux scsi driver does allow
direct scsi access to the CD/DVD drive) - to read more about this see;
http://www.codeweavers.com/support/wiki/CXGamesDRM
As such, if you live in a country where your government allows the
circumvention of such DRM mechanisms, you can legally apply an
unofficial patch to get the disk based version running. However,
due to DMCA laws and regulations in the US that apply to the content
on the Codeweavers website, it is -illegal- to expound upon those
measures in the C4 forums....see Jeremy White's posting here;
http://www.codeweavers.com/support/wiki/dmca
The program 'insde7tmp' is part of the disc based DRM used I believe.
Hope this helps...
Cheers!