I said seems because I haven't done a thorough test. So far if you're going to run the game in Directx I recommend using the Directx tool that you should find in the start menu under Metal Gear Solid; and setting it to the highest 4:3 resolution. Than set the in game resolution to 1024 x 768. This provides a pretty good picture without tanking the framerate.

So far so good. There's also a few fan patches that you can check out but personally, I like to keep things simple.