frilled: Check out the collective fix thread. Basically, you need two things:
1. An atiumdag.dll from an older Catalyst (I used 9.5, but 9.7 is reported to work as well). If you want to be sure, don't download it from unofficial sources, but download the official drivers from ati.amd.com. Extract the setup file (I used 7-zip). Locate the atiumdag.dl_ file, then in the command line use "extract atiumdag.dl_ atiumdag.dll". Copy the atiumdag.dll to your game directory (where i76.exe / nitro.exe is)
2. A better glide wrapper. dgVoodo >= 1.5 definitely works and gives me 1600x1200 on a Radeon 38700 (with Catalyst 10.2 and the 9.5 atiumdag.dell, just to mention it).
3. To get rid of the black background etc. under Vista (and 7) you need to kill the windows shell (explorer.exe). There's a batch out here. Basically, you can also just open cmd.exe, go to the game directory, type "taskkill /f /im explorer.exe"[ENTER] "i76 -glide"[ENTER]. When you're done, just type "explorer"[ENTER].
Enjoy.
:-( ... They need to patch it or something. No way I'm going under the hood for playing it.