Running Windows 7 and have tied multiple different compatibility modes and settings. Game runs fine but graphics look like C**P....Any ideas?

It forces your screen to 640x480 mode, which makes the graphics bigger. The game's graphics are 608x392, which will use about 75% of the screen at this resolution (less if you have widescreen). If you use a bigger resolution, the game's graphics will still be 608x392, and will be smaller.
Though, if you use GOG's default compatibility settings, they're forcing the screen to 640x480 mode anyway, so in that case it doesn't really matter whether you have it on or off.

I just want to bump this thread because it's quite possible that satucker actually is viewing ugly images, and not just complaining about an old game's graphics. I know I was, and I knew it was never that bad even taking the resolution into account.
My problem was that my monitor was being forced into the wrong refresh rate when the resolution was changed to 640x480. I have described the issue, and my resolution, here:
[url=]http://www.gog.com/en/forum/myst_series/how_i_fixed_a_poor_graphics_problem_with_myst_me[/url]