This worked for me. I got this off of the HPark boards. Once I did this everyting was fixed in the towns for my install of Win 2000. It has to do with the AVI files they are using for the towns.
Solution for Win2000 town-AVI-bug
by Cantello posted 10/13/00 6:35:40 AM
I just loaded townmsk1.avi in the \townavi\ directory into VirtualDub (
http://www.geocities.com/virtualdub/) and saved it with 'Save as old-format AVI'. The result was a 32MB large file, which I renamed to townmsk1.avi and started W&W.
And lo and behold, I was able to enter the Town Hall and leave the city via the eastern gate.
Here is how I implimented this...
I made copies of the \townavi\townmsk1.avi and townmsk2 and 3 as well.
I then loaded each of them into VirtualDub, then 'Save as old-format AVI' with different name (like townmsk1new.avi).
Then delete the old files and rename townmsk1new.avi to townmsk1.avi (do it for all 3 files).
Restart the game and try it out.
Worked for me. I only uncompressed the townmsk*.avi files (only 3 of them). Not the others.
Hope this helps.