Doh!
I never thought of changing the desktop resolution before. I made a simple compatibility mode (using Application Compatibility Toolkit) so that everytime I launch WinSPMBT or WinSPWW2 the desktop resolution automaticaly changes to 800x600 and when I close the game it reverts back to my native desktop res. Works like a charm now running in windowed mode.
Only thing is that I use the old fashioned windows 9x style for my windows 7 menu themes and the game window is always off center when I run it. Using the default win7 theme the game windows is spot on though. No big deal since I can just move the game window to be in the center manualy.