[morriam]

I actually was able to solve the problem through the Sierra website. Here's the answer...

Solution:
If you get a message like "...referenced memory at xxxx....the memory could not be read from," it typically indicates a memory conflict between Microsoft's Win32S (used by the game to speed up graphics), and something else in the system. You can generally correct it by disabling the game's use of Microsoft's Win32S.


To do this:
1) Copy the File SIERRAW.EXE from the King's Quest 7 CD to the game's directory on your hard drive (usually C:\SIERRA\KQ7).


2) Highlight the icon for King's Quest 7. Press ALT+Enter on the keyboard to bring up the FILE PROPERTIES box. Go into the Command Line box. Move over in the box until you find SIERRAWS.EXE. Delete the S following the W, so it becomes SIERRAW.EXE. Do not change or adjust anything else. Click on the OK button. You should see your King's Quest icon change if you did everything correctly.


Note that this may slow gameplay a little, but you should not experience the problem any longer.


Hope this helps someone else as well....