Ok, after two hours of reading websites and readmes I finally installed The Ultimate Version of Fallout .
The procedure goes as following:
1) Install Fallout 1 from GOG.com
2) Find and install "Fallout_1_TeamX_Patch_ENG_1.2w" (either via nma or just google)
3) Install "f1child_patch" (again, nma)
4) Install "fallup13" - this is the TeamX patch 1.3.4 (nma)
5) Install "f1npcmod" from TeamX (again, nma)
6) Install "sfall1" (from http://timeslip.chorrol.com/sfall.html
7) Install "Fallout1_High_Resolution_Patch_v1.3" (nma)
8) Open f1_res and set AUTO_SCRN_SIZE = 0, then your desired resolution (I use 800*600, anything above is just too darn small for my taste), then if you want, change the way ingame movies work, either fullscreen or not....up to you.Same with movie subtitles.
Run the game and enjoy it in all of its patched glory, WITH KILLABLE KIDS (not that I ever kill them, but the option is here), with better NPC interaction (armors, levelling..), with tweaks like mousewheel in the inventory etc, in higher resolution...
The Ultimate Fallout Experience awaits.
(The only slight issue I get is with the screen blackouts, very minor issue, but I find that if you just move the in-game cursor to the edge of the screen, it instantly clears up the playing area. It only leaves the interface bar thing clouded over.)
The resolution patch is great and with the children patch, the towns seem much more vibrant and alive.