I edited the registry per Widescreen Gaming's instructions (more game developers needed to have included widescreen support) and now I can "see through" the terrain.

Worse, if my sorcerer is in line with any of the "trees" or buildings that are visible through the terrain, he "disappears" behind them, even if they are far away.

Is anyone else having this issue at 1920*1080?

Looking back at their games now, it seems that Shiny Entertainment continually had oversights in regards to graphics, and had generally poor graphics. Sacrifice seems to be the exception to that last one, but it doesn't matter how good it looks if it is unplayable. :(

I had similar issues at 1920x1200. I believe if you adjust the zoom and viewing angle (middle mouse button) you can work around this, but you'll end up with no additional viewing angle horizontally, just a loss of vertical angle so in my opinion it is better to just play in the 4:3 resolution. It certainly would be nice to run at arbitrary resolutions, but I'd take correctly working at 4:3 instead of game breaking visual anomalies otherwise. I'd recommend setting the resolution to 1440x1080 in which case you'll be at the native resolution of your display making sure the driver is set up to not stretch to fill the width.

Thanks for the answer.

If I don't stretch the screen then I'll end up pillarboxing myself...?

I suppose it won't kill me, though it will hurt, to play @ 4:3. Seriously Shiny Entertainment, you were one rolling failure in the graphics department. You offered an "insane" setting for graphical detail but overlooked the widescreen display :(

It will indeed end up with bars on the sides if you don't stretch, but I think that is much better than stretching. I agree that it would be nice if every game supported widescreen resolutions, but they didn't become common until around 2003 (according to Wikipedia) and Sacrifice was released in 2000 so I don't think they can blamed for overlooking what wasn't really available. While there are certainly older games that support pretty much any resolution (Total Annihilation as an example), I would imagine most in the 2001 or so and older range would suffer from these kinds of issues.