Sometimes my game would suddenly exit and Windows 7 would try to analyze the problem (as with most cases on crashes) and states that I-War Patch has a problem but isn't able to figure out what went wrong.
I admit I am using the dgvoodoo method to play tha game but I've already completeda couple of missions with it and finished them with no problems whatsoever (not to mention it fixes the ghosting video issue. The crash seems to pop up mostly around Saltlake Station or other areas where ships frequently warp in.

I've had a similar thing happen with the dgVoodoo wrapper. It works better than the original in many ways, except that it is unstable.
It seems to happen to me more in situations where there's a lot of ships, possibly when I fire missiles. Unfortunately due to that instability I've had to go back to the original wrapper, and put up with the smeared movies. That's really the only issue I have with the original wrapper, and it's a pity there's no solution been found for it so far.

Well, thanks for the feedback. It's a good thing I backed up the original glide2x.dll file(s). so I can swicth back.
My only main concern is that the GOG wrapper isn't customizable and I have to view the gameplay in a much smaller window. On the other hand it is extremely stable.

Have you tried the high-res tweak?
There should be a file called glide_wrapper.zbag.ini somewhere in your appdata or Application Data folders (depending on which OS you're using).
Edit that and change the high_res=0 option to high_res=1
Then the game's 3D will run in a higher resolution, and it'll scale properly using Nvidia's fixed-aspect ration scaling if you have an nVidia card. There will be a small border around the image, but it's almost full screen on my 22" monitor.

Edit: I tried using said tweak, and unless I require a reboot, changing the value of high_res to 1 doesn't seem to do any effect.
Edit 2: Seems like the other thread says its an issue with Windows 7 specifically. I hope there's a fix to this since the dgVoodoo option isn't stable, and I'd hate to crash mid-mission.
Edit: I still have my "-b -16 -800x600" arguments on the shortcut. Should I remove that?

Yes, the high-res tweak won't work with 800x600 mode. Remove the -800x600.

Oh I see what I was doing wrong. The shortcut is pointing to iwar_star.exe (plays video intro) and had to redirect it to IWar.exe.
Hey, it works (just like running the dgvoodoo glide wrapper)...only problem is the Infograms video is messed up and it crashes on the menu.
Edit: That said, after redirecting straight to IWar.exe the "-b -16 800x600" arguments seem to take effect (still doesn't cover the entire vertical space like the other glider)...but only on the mission briefing screen and gameplay sections.

I think I know how to resolve the ghosting problem. Apparently I had to make sure I was using the latest DirectX 9.0c Run Time (which is separate from the DirectX11 I already have), since once I installed it the movies run flawlessly.

Interesting, thanks! I'll have to try that.