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So, is there a way to run the game windowed? I'm sure borderless window wouldn't work because of the limited resolution. But I'm pretty sure the highest resolution you can use doesn't fit properly with most widescreen monitors.

With a lot of DosBox games, I can usually get them going in a "maximized window" (so it fills the screen for the most part and just has the border around it). So I can get it large sized, without the glitchy resolution stuff if I need to alt-tab.
A) Add the parameter/argument [/window] to the exe,
i.e. change the command line from [\yourWiz8Installdir\wiz8_v1261_nocd.exe] to [\yourWiz8Installdir\wiz8_v1261_nocd.exe /window]

note this appears not to work if the game runs with madgods CF injector, which is required for some mods.

B) hold either Ctrl or Alt and hit either F11 or F12. Iirc this only works if the 3D window is active.