What really determines whether you launch in VGA or SVGA mode is the entry in Screamer's .conf file. At the end of the file you can find a line with "STARTH.EXE". This means that the game launches in SVGA mode (what the SETUP.EXE did in the old days is modify a .BAT file you used to launch the game, I think). The graphics may look blocky, but you should be able to notice that the fonts and other 2D stuff is slightly smoother in SVGA mode.