Here's what I did, tell me if this works or if it's a bust. I clearly remember hitting a wall for a while before I discovered how to get it to run without crashing.
This is working on a Windows 7 64-bit PC with an ATI gfx card.
Assuming you have installed the DK2 and have a shortcut to the DKII.exe (otherwise make a shortcut to this)
Then right-click open up properties.
In compatibility add these settings:
Run in Windows 2000
(Unchecked) Run in 256 Colors
(Unchecked) Run in 640 x 480 screen res
(Checked) Disable visual themes
(Checked) Disable desktop composition
(Checked) Disable display scaling on high DPI settings
(Checked) Run program as admin.
Then in the registry you need to go:
HKEY_CURRENT_USER->Software->Bullfrog Productions Ltd->Dungeon Keeper II->Configuration->Video
ScreenHardware3D=0 (disables hardware acceleration)
The registry stuff did the trick for me. Also I didn't patch any of the non-bullfrog ones, I used whatever the last bullfrog patch was.
This website helped with installation: http://404forums.net/archive/index.php/t-4459.html
Tell me if this helped you at all. If it didn't then tell me the error you get and it might remind me if I forgot to mention anything.