I've tested the game on win7 x64 and have a few issues, mainly tire flickering, physics fucked up and overall speed is too high (especially sky & clouds)

If i install it on a windows 98 or windows xp VM, would it work ok ? Is it even possible ?

Check the two sticky threads for workarounds to get the game running (almost) properly. The problem is not the OS, but actually modern processors, which are too fast for the game and create timing problems.

Yeah, i did go through them, and no one mentions the behavior of the game when installed with an old system that doesn't handle multiple cores.
I've found abandonware websites that claims it to work well on virtual box win98se/whatever, so i wanted to know if someone had tried it here with the gog setup and wrapper.

The only issue that I can think of is the GOG-related stuff (like the installer and launcher) possibly not running because of dependencies. I seem to remember that there were some required libraries, maybe the .NET and VC redistributables.

EDIT:
Actually, here's a link the issues that I experienced on a fresh install of Windows XP
http://www.gog.com/forum/interstate_series/goglauncherexe_fails_to_start_the_game

Thanks for the info.
Just so you know, i did :

- Find and install a win98se image (i use vmware but it should work also with virtual PC or virtual box)
- Find the original iso for I'76 on abandonware websites or wherever you want.
- install the game and direct x 3 on your VM

The game runs better than on windows 7x64, but there are still the same issues though they are less important. It might just be the fact that windows 98 se with 1 core + vm slows down the game and makes it better. But it is still not playable so don't bother (i did it for you :p) and try to make it run on your current OS. Or, just forget about it until it's fixed someday. I think that's what i'll do :(

I'm not sure why this isn't common knowledge already but forcing a 25-35fps limit on your GPU fixes the problem. It is entirely an issue of the game rendering too fast. The game was made for late 90's computers, they did not anticipate the need to limit the rendering performance and what would happen when more powerful computers than what they used for testing would run the game.

I've never tried to force an FPS limit on my GPU. Can it be done easily through the driver software? Or is a third-party program required?

Also, that might be common knowledge, I haven't read the workaround threads here in a while.