Thanks for your well intentioned post, but:
1.- The first line you are changing is time compression, not graphics res
2.- The other line does not make any changes in SH3 screen res. It has been checked and tested many times. If you don't believe me, grab a screenshot in game and then open it with Windows paint. Check the resolution....will still be 1024x768
The good news is that you can however trick the game to run at any resolution (Though any sc reen different that 4:3 proportion will show stretched images) with the d3d9.dll (Do a search using that as keyword)