Thanks tthurman, I think what I was doing wrong was I had Daphneloader still loaded in the background. Once I rebooted the machine I at least got to hear the sound of the game but I had I still had a blank screen. After changing the Daphne options line to match the resolution with the desktop resolution my pc was using I restarted and now I can see and hear and play Dragon's Lair. eg
vldp -fullscreen -x 640 -y 480 -nohwaccel was updated to vldp -fullscreen -x 1920 -y 1080 -nohwaccel
This is now resolved, hope it helps someone else with the same issue.