A list of other things I've tried, just so I can do something that's faintly related to playing:
- Alt-Enter : nothing happened, other than an alert sound.
- Started the LegendaryHeroes.exe from folder, rather than from Steam.
- Messed in Settings.ini, changed DisplayWidth to 1680, DisplayHeight to 1050, UseDesktopResolution to 0, and Fullscreen to 1. A couple variations involving those specific settings. Also, looks like SkipIntro=1 doesn't do what I expected, namely, skipping the intro movie.
- Made sure the poor Intel chip really, truly had updated drivers.
- Realized that Settings.ini, found in /Program Files(x86)/Steam/etc, etc was a red herring and changed the *actual* settings file found in /Documents/My Games/legendaryheroes and called Prefs.ini instead. And now the weirdness gets... weirder.
So, it looks like Prefs.ini is what you want. Setting SkipIntro=1 does appear to skip intro movies. And it looks like the resolution has improved in the game, yet it's still got huge black bars to the right and below the displayed game. I also set HardwareMouseCursor to 1, just to see what happened and now the mouse seems to know where it is in the game real estate, even if the game is displayed in far too small a plot.
Unfortunately, the following settings appear to get reset every time the game is started: DisplayWidth, DisplayHeight and UseDesktopResolution. I think this is the culprit, as it seems like just changing UseDesktopResolution to 1 should fix the issue.
