I don't know how useful this would be for anyone, but I found Tarzan to be much more nice looking and easy to play by using DxWnd to force window-mode and using "Software High Res" as the graphic setting.

What I mean, is that you could go from the pains of this

To something more like this

The ingredients required to conjure this witchcraft is DxWnd: http://sourceforge.net/projects/dxwnd/files/Latest%20build/v2_03_32_build.rar/download

Not surprising, it's a tool that hooks into the executable and forces window mode. As far as setup goes, you extract the .rar file into some folder and run dxwnd.exe. Right click in the white area and select Add, or go to Edit->Add. I'm not sure if I went with any distinct changes from the default settings, but for posterity, here are my settings. I'm fairly sure I haven't changed anything on the other tabs.

After that, press OK and doubleclick your entry of Tarzan to start the game. It'll launch in fullscreen, so Alt-Tab to put it out into its usual "Software Window" mode. There's a good chance it's gonna end up looking like this.

In the case it does, let it get to the main menu, press F2 and go to the Graphic settings. On the off chance you're unable to read anything, navigate with the following sequence from the main menu.

F2, arrow down, arrow down, arrow left, enter. It'll show the DxWnd splash and get you to the magical lands of "Software High Res".

To capture this in OBS, select Capture Window and make sure to check Entire Window. Tarzan will spaz out a bit when you tab out of focus of the game, but it's not too big of a deal to press F2 and select the right graphic setting again. This is how I've got it set up at the moment, I reckon it looks alright!

The most optimal solution I've found is DxWnd in conjunction with nGlide: http://www.zeus-software.com/downloads/nglide

After installing nGlide, launch the game with DxWnd and select Glide 3D in the graphics setting on F2.