Baseline (Widescreen) Solution & Issues
Solution: Go to --> ...\Main\config.cfg and edit these lines:

seta cg_fov "xx"
Set this according to your preference. I recommend 90.4 for 16:10 resolutions and 96.4 for 16:9 resolutions.

seta r_customheight "xxxx"
seta r_customwidth "xxxx"
Set this to your favorite widescreen resolution.

seta r_mode "x"
Set this to -1.

Do the same for uoconfig.cfg in ..\Main\uo