It works perfect even launching the game from Galaxy, but as you advise, the ddrawcompat version used must be specifically the old 0.1.3, because the newest stable one makes the game have corrupted/rainbow colors in the menu. Something must have changed since that version.
0.1.3 seems to work fine.

Greetings

Confirmed. 0.1.3 works. No more slow running Pacific General on Windows 10 64bit and the mouse stutter fixed. But you must use 0.1.3 of ddraw. Download it, unzip it into the Pacific General folder, launch the game, and good luck.

WOW Here we are in 2023 on Windows 10, using (just now first time actually) 0.1.3 and it........
WORKS GREAT!
Now I can play this instead of some new game called, whats that, "Stirfried" or something?