NTVDM: "Assertion 'OldRefCount < 2500' failed" in MM when running Kyrandia SETUP.EXE from cdrom

r67296.

Got the game from: http://www.bestoldgames.net/legend-of-kyrandia
The game has a configuration utility SETUP.EXE which works normally after copying to disk. If I run it from cdrom, though, it asserts in the end - on writing the configuration. Assert is contable, but probably infinite, so ROS is effectively unusable once it's triggered. On Win2k3 the setup.exe just loops infinitely (I guess) but at least I can start taskmgr and kill it.

Attaching debuglog.