Haven't used dgVoodoo before but I tinkered around with it a bit today and I'm having the same results as SuperLibby. It does use 16x9 aspect ratio, but the resolution is very low and smudged out. Also, yeah, cutscenes not playing and mouse very laggy in menus.
Attached screenshots with and without dgVoodoo.
So at the moment playing without dgVoodoo seems the better option. Crisper graphics, combined with cutscenes and usable menus makes for a better experience.