You need to turn off your monitor's auto-resizing, or you need to install ACT (application compatibility toolkit) and give it the full spin.
I've never gone to that much trouble. I always play at 1600x1200. Avon Lady has played it on widescreen at something really stupid like 2360x1600. Keep in on the widescreen resolutions, there will be a "fish-eye" effect, since the textures are still 4:3.
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