Thanks Scorpio'. Setting the display to windowed mode did the trick alright.
As for the background music, I was hoping I could just pull the .wav files from the original SP CD and then follow the instructions from the link you provided, but I couldn't find a single .wav file.
Update: Loaded up SPMB CD with Windows Media Player and all the .wavs popped up. I was able to rip them, rename preferred soundtracks, and replace stock ones. Works great.
Now, I wonder if it's possible to add background music to the splash and menu screens.