Graphics:

Go to C:\Users\ (Your Account) \Documents\SHELLSHOCK_NAM67

Open the TOD_PC.ini

Copy the following lines:

[Video Driver]
Mode = 1920x1200x32 @ 0Hz
ScreenMode = Fullscreen
PostRenderEffects = off

[Sound Driver]
3D Sound = on

by Mode you can put your own resolution for example:

1024x768x32 @ 0Hz
1280x1024x32 @ 0Hz
1680x1050x32 @ 0Hz
1600x1200x32 @ 0Hz

Sound:

Go to C:\Windows\System32

find the OpenAL32.dll copy it and replace it with the OpenAL32.dll in your Shellshock game directory

Have Fun