In the taverns a card game called Arcomage can be played (to win in-game money). 3DO published Arcomage later as stand-alone game.
There is an area in the game called The Barrow Downs. This is a place in Tolkien's Lord of the Rings books.
The necromancers land is called Deyja. Deyja is Icelandic for
"death" or to "die"
In a quest for the light path you have to rescue a woman who is held in William Setags tower. Setag is Gates spelled backwards and Bill is short for William. They were having a poke at Bill Gates of Microsoft.
As usual in Might and Magic games, there are big in-jokes about other games in the series. One of them is about "Red Dwarf Mines". It was also the name of a dungeon in Might and Magic 4. In MM7, if you ask a dwarf about the medusas that invaded the mine, he will be worried about "fighting them with staffs". In MM4, Red Dwarf Mines were full of mad dwarves armed with staffs.