UPDATE: Managed to fix all problems.
Problem 1: The aspect ratio was fixed by changing the widening rule in my monitor, from "auto" to "manual". Basically switching to manual added the black bars and presented the game in 4:3 .
Problem 2: The directdraw.dll was causing my in game graphics and units to move very slow.
The problem was happening because I had left my extended monitor on while playing War2, for some reason this was causing the in game graphics and units to lag?
Still not exactly sure why...if anyone has any thoughts on this would be great to hear from you! Thanks!
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