ZaphodAVA: YES!
CpuGRAB does fix the flamer/mortar issue. It introduces a tiny bit of jerkyness to the game for me, but there is a sweet spot where the game is quite playable with flamethrowers and mortars. Mine is about 85 percent.
Worth noting that once this is set up, you can turn off vsync, as the framerate is no longer an issue. Mine is running at 1650x1050. Menu colors are a bit wonky, but I don't care.
Note: for multicore users, set the affinity of CpuGRAB to the same processor that I76 is running in.
Tomorrow night, I will try this.
Hopefully, GoG team will try to make some "official fixes." In the mean time, I hope everyone can get this awesome game almost completely playable.
EDIT: I used 79%. The front wheel on the car still looks funny, but no cars are bouncing anymore. I could go further, but I think at 79~85% looks to be about right.