Doesn't work for me either. For some weird reason, the CD version of Interstate '76 (and Nitro) always worked fine for me on my Win XP (Pentium 4 3 GHz, GeForce 8500GT, 1GB RAM DDR, Turtle Beach Santa Cruz sound card). I decided to give GOG's version a try.
After I purchased and installed the game from here, I started getting the wobbly wheels bug. There are also sound bugs present. Aside from that, in Nitro Pack, there is a very annoying sound bug that plays the engine sounds of every car that's on my radar very loudly, to the point of the game being unplayable because that's too annoying.
And what's even worse, after I uninstalled GOG's version and installed I'76 from the original CD's that I had, the wobbly wheels bug was still present in that one too.