For infinite lives in this game, use the DOS utility DEBUG. 
First backup your game to be edited, then type the following 
>from the DOS prompt: 

ren baal.exe cheater.cht 
debug 
a 100 
mov dx,es 
add dx,1000 
mov es,dx 

g 108 
r ip 
100 
n cheater.cht 
l 
e es:2251 90 90 90 90 
Then type: 
w 
q 

Then rename CHEATER.CHT back to its previous name.