My solution to the fallout games on win7 (f1 and f2) was to install the widescreen patch (latest version available on nmafallout site) and select 32 bits in graphics options (not ddraw). Game works full speed with absolutely no bugs (colors look also OK with no additional tweaks) and I can also use a custom resolution. This with sfall installed for both versions. If anyone need help, I'll be glad to answer.
Post edited May 09, 2012 by boglav