Speaking of DOSBox, I ran Duke Nukem (first one) on it and compared it to running on DOS and it runs alot smoother on DOSBox. I mean it's good and all on DOS and was created to run on it but play it in DOSBox and the scrolling and animations seem a slight bit smoother. But as Fishbong suggested, check it out, hopefully it'll make your game run in Windows and yes you can play yours games windowed or full screen.
I presume this will work with the game, this is how I was told to do it for Sims 2 but the principle should be the same I imagine.
Right click the game's shortcut and select properties. Under Target you should type a space after the game location and then "-w" (without the quotes) Then when you click the link to start the game it should hopefully start up in a window. If you start the game up any other way eg: the game automatically boots up when you put the disk in then the game will still load the full screen version.