Yes, this is a big problem. Chaser in windowed mode has a default resolution 640x480. It does not matter what screen resolution you have. Unfortunately, the game takes aspect ratio information from the system, so the widescreen monitor stretched window with Chaser to the sides. This can not be repaired...
But... I have a 16:9 monitor - 1920x1080. But if I set resolution in the game to 1280x960 (4:3) and fullscreen - it works correctly. When the game starts, the screen automatically switches to 4:3 mode. This allows the monitor. But is necessary to set it properly of monitor.
See what your monitor offers for options. Adjust the setting in the monitor so that the aspect ratio information take from the application. If it allows your monitor, then you can play Chaser in 4:3 and "fullscreen". Like me on this video:
https://www.youtube.com/watch?v=-li6M720EyM ;-)
Sorry for my bad english...