hello,
I had the same problem and the same intel chip and this thread helped me alot so i thought i would help out since i solved the issue on my end. I did all these things
1. went to display settings on my computer and changed to 1920x1080
2. go to properties of model 2 exe and check and select these options:
run this program in compatibility for windows xp service pack 3
run in 640 x480 res
run as admin
3. when you open the program pick full screen resolution 640 x 480
you should now be able to run the game fullscreen. my problem now is i want to run the game on 1920 x 1080 and it freezes on me just throwing this post out there to see if someone is able to figure that out