The CD version runs fine if you mount the needed drives from top level. For instance if DuneCD is installed in "F:\games\dunecd" and the CD drive is "K:", use
mount f f:/ and
mount k k:/, then browse to the dunecd folder to launch "dune.bat".
The game crashes quite often, though, when you reload a game (eg the first time you load a savegame it's okay, but if you reload the same savegame it crashes).
The floppy version runs without sound.