Well, I've got it working now --somewhat. The error was -I think- that there was a size zero city which was taken in the beginning, and that always causes Civ2 to crash. There are a few other flaws as well -especially economic ones -if I play the dragons, a whole LOT of my Dragons get disbanded immediately due to lack of support. Easy to solve : Just change home city to "NONE" when editing the units on the map (Ctrl+U or from the Cheat menu).
I spotted a minor graphical flaw as well, the silvanesti units' grey background is not invisible. Simply fill up the background with
the purpleish color instead. That one is always invisible; the grey seems often to be mistaken for "the other grey" color in the units palette.
The second one is also quite simple : just change the research rate to a ridiculously high rate, so that it will take a zillion years to invent anything. You can do that in the Rules.txt (in Global Variables) or from the cheat menu (special rules/settings).
You might want to rename the appropriate techs and improvements too, to a fantasy theme. You can just block out all techs you don't want to use by assigning "no,no" as their prerequisites. The same goes for wonders and improvements etc.
HERO UNITS : simply high att/def/hp/fp units that appear only once, or from the outset, and never can be produced in the game. (because they have "no" as their preq)
You can have these units be very powerful in certain ways, and play around with them in the events, but you don't need to do all that. Thats just the cream of the cake. You'd probably be better off just setting up the basics so that it's fun playing. I must admit, I didn't really get anywhere when I played it, but I think this has some great potential.
A small idea : If you want all your "villages" to be burnt by the dragons, you can make a terrain graphic that looks like a burnt village, and place it in all those places where the dragons are likely to strike. -You can also similate the villages with the mining field or airbase (but I see you got that one covered
).