sol_hsa has released an update to his Kilrathi Saga ddhack. Download version 0.4 here (55 k zip). He's implemented a "half'n'half" mode that strikes a balance between standard upscaling and the bilinear smoothing implemented in the patch's first release. There is also much improved compatibility, especially with Wing Commander 2. Instructions are included in the attached readme. The first image below shows normal graphics, the second image has full bilinear filtering and the third image is the new hybrid mode.
sol_hsa could definitely use more testers. Give it a try and post your results and system specs to Crius.net. The program is compatible with the PC Gamer KS WC1 release, and there are some reports of people having more luck running that version compared to the original Kilrathi Saga. The interim version 0.3 is also available if you happen to boot to a blank screen with 0.4.
Seriously, I'd love to hear if anyone tries this to hear if it works elsewhere or not.