Yep, for increasing the resolution, see VanBurro's link.
Nope, as for windowed mode. Well... huh... Maybe... to be honest there are 2 possibilities I can think off, but they require more work:
1) A http://www.google.be/search?hl=nl&source=hp&q=virtual+machine&meta=&aq=f&aqi=g10&aql=&oq=&gs_rfai=. However your BIOS settings needs to support hardware virtualization, otherwise forget it.
2) Use the DOS version of Fallout 1 in http://www.dosbox.com/. (Dunno for sure, never done it this way and it's a bit cumbersome IMO.)