Just wanted to post this here for all Windows 7, widescreen resolutions and multi-core CPU users out there.
A T3 fan named "snobel" released a patch to fix all the game's problems regarding Windows 7 and multi-core CPUs.
Game runs great now. Just install the game, install update 1.01 and install this new patch.
here's the link.
you might need to register in "ttlg forums" to download the file.