I created a wrapper which improves the compatibility of DW with new GPUs. I did not have time to play the game much so there might be some serious issues in latter missions. So far I have seen few smaller graphical glitches however the game was playable (Vista 64bit, NV GF 460) so it might be worth try http://jiridvorak.webpark.cz/dw/
I really thank you for this wrapper, for it just solves the problem and I can now run Dominion Wars on a modern PC!
Tested on my desktop which has ATi HD5570 and on Windows7 it doesn't need to set any compatibility mode. May I write a link to your page in wikipedia/memory alpha?