Ive been messing around with "fullresolution=" parameter in the dosbox.conf file, but whatever i set it to, the screen stays the same.
Is it at all possible to set it to a widescreen resolution?

I'm assuming you're modifying the dosbox.conf file in the game's directory.
Do you want the game stretched to widescreen? If so, set the fullscreen resolution to 640x480, make sure aspect=false, and disable any fixed aspect ratio settings on your monitor and graphics card drivers.

Thanks; will try this =)

Thanks a lot kalirion, your fix works :)