just wanted to give a friendly reminder that once you start the game you can click on the options and put the videos on FULL SCREEN, its half screen by default (dont know why). Under "more options" you can also remove those old FMV game black lines (which leads to the vids looking more pixelated so its up to you.
at first when i saw the small videos i was like wtf :D

Because for computers of that age it was a performance issue. Of course in the GOG version, that shouldn't be the default choice.

I replayed this two months ago on vista with the original cd's and there was a fanmade patch that not only made it compatible with vista but also removed the black lines without making it more pixelated if i remember correctly. If you google it (phantasmagoria vista) you should find it quite easily (it's how i found it). I have no idea if it works with the gog version though... (and for those who have phan2 and can't get it to work on vista or xp, the windowsversion that is, there is a similar patch)

You don't need to patch this game to take out the video interlacing. Just go to the More Options screen (or whatever it's called) and turn on Movie Detail. Do this in addition to enabling full screen movies (as opposed to half screen) and you will get full screen video with no interlacing, albeit somewhat pixelated.

"there was a fanmade patch that not only made it compatible with vista but also removed the black lines without making it more pixelated if i remember correctly."
Sounds like a patch-of-interest to me.

THANK YOU sooooo much for this info!!!! Verrryyy helpful. :)