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First of all, go to this webpage in Wide Screen Gaming Forum:

http://www.wsgf.org/dr/desperados-wanted-dead-or-alive/en

There you can download the file Desperados.7z which includes the game.exe executable for several Widescreen resolutions.

Then you need DXWND , in this case the version v2_02_90 build or the most recent one, which is the 3.49 at the moment of writing this post , which can be downloaded here (I haven't managed to get the game to work properly with more recent versions of dxwnd):

http://sourceforge.net/projects/dxwnd/files/Latest%20build/v2_02_90_build.rar/download (this is the link to the latest builds , which includes ALL the historic builds http://sourceforge.net/projects/dxwnd/files/Latest%20build/ )

Now you just need to follow these instructions --thanks to Porchlight Silhouette:

http://steamcommunity.com/app/260730/discussions/0/540737262306815107/

THERE IS NO NEED TO DOWNLOAD THE DSWIN8 file. I also added some notes and modifications to the original text.

1) Unrar and inside the extracted foler and run "dxwnd.exe" as administrator. Go to "Edit->Add", in parameter "Name" set the name as Desperados or whatever you prefer.
2) In parameter "Path" choose the .exe file of the game (in my case it looks like C:\GoG Games\Desperados Wanted Dead or Alive\game.exe).
3) In the "Main" tab, under "Generic" . IMPORTANT: Tick "Run in Window".
4) Also in "Main" tab, under "Position" set "Window initial position & size" to X=50 and Y=20 (or whatever you prefer). Set "W" and "H" to your preferred resolution (in my case it is W=1280 and H=720). (I run the game on a 1366x768 laptop)
5) In the "Video" tab, under "Windows handling" tick "Modal Style" and under "Color management" tick "Set 16BPP RGB565 encoding".
6) Next in "Input" tab tick "Hide Cursor". If the cursor flickers on the main screen of the game don't worry, it works fine in-game.
7) Also VERY IMPORTANT: Set the Compat. tab for Compatibility mode to Windows XP, which along with Windows 2000 allows the mouse cursor to move out of the window (Windows 95 compat for instance, captures the mouse within the window) . Just to make sure, you might want to also check the "Release mouse outside window" setting, just in case.
8) Lastly click "OK" in dxwnd, if all is good it will show a green circle before the name of the game in DxWnd.
9) You will need to start DxWnd every time before you launch the game. When you close dxwnd, answer "Yes" to save the options that you changed. That's it...
10) Now go to the folder where you uncompressed the Desperados.7z file which contains the executables for widescreen gaming and replace the game.exe file with the game.exe file of the resolution of your choice. In my case it was the file corresponding to the 1280x720 resolution. Make sure that both the resolution of the Wide Screen patch and the DXWND W and H settings match.

Sometimes it takes a while to load, or after the pocket watch appears just get the mouse outside the window, go to any other program and then return to Desperados.

This is Desperados running on Windows 10 in Windowed Mode, without lag at all and perfectly fine!! (full res. , a compressed picture has been attached to the post too)

[img]http://i.imgur.com/rZUugvX.jpg[/img]

Finally I would kindly ask Nordic Games to please make a make proper fix for the game, if possible, as it it unacceptable to release a game that is basically unplayable. Thank you.

***UPDATE 19/06/14***
To rectify the enemy field of view slowdown in DXWnd, under "Video" tab , instead of ticking "Forces 16BPP desktop", as I had stated in the orginal instructions and have now removed, untick it and the game should now run smooth when the ememy field of view is activated. I have tested this and it has worked for me perfectly. If you still have a slow down try ticking "Simulates 16BPP desktop" to see if that makes any improvement. Full credit goes to Steam user typicaleverything for this correction. Thanks a lot. :D

***UPDATE 23/11/15***
"Motorboat Crashing"
Steam user Fava had experieced frequent crashes seemingly triggered by different sounds playing in the game. After some research he found that selecting "Set Single Core Process Affinity" in the "Compatibility" tab fixed his crashing issue. Full thanks to Fava for posting this information, as proactive feedback provides everyone with more solutions to try.
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Post edited December 26, 2015 by Grintiff
Edit: you need the game.exe files from Wide Screen Gaming Forum

Enjoy this great game.
Post edited December 26, 2015 by Grintiff
Hi! How did you get it running with Win 10? The game.exe always crashes... any idea?