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H3X3N666: I get this effect using either your solution or the dgVoodoo wrapper solution.
Don't know if this'll help, but I had no luck running this game until I changed "UseDirectSound=" in System.ini from True to False. That's what solved it for me.
For some reason my game doesn't quite seem to be full screen. There's a very thin white line on the left and at the top... almost like the screen has been shifted down and to the right by a fraction.