I've been playing TRII in my Windows 7 laptop with the tombraiderchronicles.com patcher, and it runs swell.
However, it has some issues that I'm just too curious to ignore:

1) Music plays, but goes mute when the camera is underwater, and unmutes when it's not.

2) FMV videos play, but always with a window border.

3) Pretty much all of the in-game text has rough edges, as if it was badly rendered. (Solved, enable 'Bilinear Filter' in the Setup)

Any ideas on how to solve these issues?

Edited September 4, 201511 yr by rika_mitsuda

Been a long time since I played Tomb Raider 2 However I don't recall music underwater anyway.

FMV's I would try to install a codec pack and they might improve.

As far as the text it might be a setting for the graphics.

Yeah, the text issue lied on whether the 'Bilinear Filter' option was enabled or not. If the filter is on, it will smooth out the game's textures, including the text.

awesome!

I would seem that the FMV displaying the window borders is a codec issue. Which is weird, considering TRIII uses the same video format (.rpl) and the same .dlls and does not have the same problem. There was a guy in a Steam forum who mentioned that installing an old version of Macromedia Shockwave would sometimes fix the problem. Anyhow, I guess the best way to enjoy the FMVs is to download the Bink conversions, but I'm too lazy for that

Edited September 4, 201511 yr by rika_mitsuda

I'm still doing my research on the music thingy. As you can see in the video, the PlayStation version of TRII DID play the music underwater.
https://youtu.be/qEWwfz0n0r8?t=43

Yeah I see that. I believe the sounds play from the CD.