Why is everyone so concerned about playing in hardware mode? I got a 6600GT a while back and it did the black blocks thing, so I just play in software mode. There is no difference, apart from some of the blending in menu backgrounds looking a little nicer in hardware mode. On a modern pc there is really no performance hit running in software, so why all the moaning?
*Shrug*
Well, whatever. I'm happy with both 7 and 8 running in software, it's not as though it makes a real difference. Unless... it's an ego thing? "Oh noes! I have this uber expensive graphics card that I can't use because the drivers don't support the game properly! I must get this working to avoid my ego being bruised!" In which case, I pity you.
This isn't particularly aimed at any one person BTW, so don't take it as such. It's just kinda silly the lengths people will go to to get the precious hardware mode working on older, unsupported, games like this.