this was obtained by doing google search 'masters of orion 2 running on windows 7'. The suggestion was to use DOSBox though I have never used dosbox.
Perhaps as time goes by more user data will become available as people with windows 7 try to get old classic games such as Moo2 working on the new operating system and a 'best solution' will be found. However there currently doesn't seem to be a best solution.
I remember playing Moo2 to death a few years back, at the highest level of difficulty it did present a challenge. A good starting position was essential, otherwise it was game over within the first few turns. However once I had finally mastered the game a couple of things did eventually put me off it. The first thing was it became quite easy to exploit the AI with the right technology, namely in ship-to-ship combat the ability to teleport troops from the player's ships to enemy AI ships and by that means take over the enemy AI ships and add them to the player's fleet. The second thing that put me off was the inability to use tractor beam technology in ship battles without the game crashing after a time. However the fault may have been due to modern and incompatible nvidia graphic card technology.
I figured out you have to kill explorer.exe process. I don't know why, but it works!
By the way, this problem is in more old games... like Age Of Empires etc...
i hope it help
Another option is to open the Display control panel in Win7, then click the adjust resolution tab, then leave that window open. When you launch Orion95.exe the colors should be fine. I discovered this solution for Fallout 1 when I used Google to look for the graphical issues for that game.
This only fixes the colors in Moo2. The game is still unstable and crashes constantly.