Yeah, some people claim to have done it. But at least on my end I always end up with a messed desktop, bugged graphics, hooked windows and other strange "features" my computer normally doesn't produce.
Not saying it's not working - just saying that I tried quite a few games with DxWnd and D3DWindower and there's not been a single time it worked for me.
But anyways - within a window DD would automatically be at native resolution - and that's just pixelhunting on my display. So I skipped it and went fullscreen in 1024x768 on a 19" 4:3 display, repairing my desktop after each session -.-