I've recently found out that the DXWnd Wrapper (v2_05_96_build) that performs almost equal to the GoG released game can now supports forced fog in the game.
http://sourceforge.net/projects/dxwnd/
I updated my troubleshoot help doc to reflect this.
Basically its one setting "Force W-based Fog". (under the Direct3D Tab on the wrapper).
Previously tested on early builds of this wrapper and the setting wasn't working. So its a neat find now that it does work.
I haven't found how to clean up the Terrain Shimmer in any D3D Wrapper.
However OpenGlide not only restores fog, but tends to the Terrain Shimmer as well.
https://sourceforge.net/projects/openglide/