Dungeon Siege 2 vs Windows 7

It's actually quite likely that these games are relying on old 16-bit DLLs. A lot of early 32-bit software relied on old 16-bit DLLs for some functions, as they did the job, they weren't used in a performance critical part of the software and there was no need to look for 32-bit versions. (for example until fairly recently the install software was often 16-bit, so much so that Win7 actually detects that and silently replaces with it's own 64-bit version of the old DLL).

Have you looked at Windows 7's XP Mode? This runs an entire copy of 32-bit Windows XP within your Windows 7, letting old programs run within XP without the program knowing it's on a 64-bit Win7 machine at all, and as it's all integrated you will hardly notice that it's running in XP.

Windows 7's XP Mode: what it is, how it works, who it's for

• In DS2 multiplayer you play the single-player campaign, the only difference being you are playing with other people.
• You aren't limited to only controlling 1 character per player - 2 players can have 3 characters each for example (not sure if those are the correct numbers though).
• You can save the state of the multiplayer campaign and resume it later.
• Every player gets his own quest rewards.

One thing didn't change, though: you can use a single-player-campaign raised character in multiplayer, but not the other way around.