There is no way to avoid stretching if you want to use widescreen resolution in that game. What I usually do for older games is simply run them in 4:3 resolution, for my monitor of 1680x1050 - 4:3 resolution is 1400x1050, so i just add this res as a custom in nvidia control panel. I also set in nvidia control panel to maintain correct aspect ratio, so when I run 4:3 resolution I get small black bars left and right but no stretching and everything looks clear because native rasolution is still used, just not all the width.
C2D E6750 @ 3.2Ghz, 4GB 800MHz DDR2 4-4-4-12, GeForce GTX 260 c216 OC 896MB, 3.2TB, Windows 7 Ultimate x64
Xbox 360 Elite, PS2 Slim, Xbox
