Has anyone had any luck getting Zork Nemesis to play videos in pixel-doubled mode instead of line-skip mode (e.g. with black lines interlaced in the video-see attached image)?

I remember this being an issue with the original Windows version of the game, but you were able to fix that by editing ZNEMESIS.INI and setting "LineSkipVideo=2" to force it to pixel-double instead of line-skip mode (as mentioned in the ZNEMHELP.TXT file). However, the same setting doesn't seem to do anything in the GOG version. Maybe it's a limitation of the DOS version? The line-skipped video was at least okay on CRTs, but its not very good on LCD displays.

I think it is indeed a limitation in the DOS version. It does not seem to recognize all the variables in the INI file. I did get the Win95 version to run and the fix works fine there.