Problem #16
There are problems changing the resolution of Vice City; and/or the game crashes upon 'ALT+TAB'ing out back to the desktop.
Solution: It should be noted that the resolution can only be changed upon initially running the game (i.e. not after a gameplay has begun). Therefore, quit Vice City. Load it up again, and before anything else is done, simply head to display options and change the resolution. You must select the desired resolution with the directional keys and hit Enter to confirm.
Alternatively: Set the compatibility mode of the executable file to 'Windows 98'. Do so by: right-clicking gta-vc.exe (default: C:\Program Files\Rockstar Games\Grand Theft Auto Vice City\gta-vc.exe) -> Properties -> Compatibility tab -> check 'Run this program in compatibility mode for:', and select 'Windows 98 / Windows Me' from the drop-down menu. Apply, OK. And as pictures speak a thousand words, click here.
Alternatively: Uninstall any additional media codecs you may have installed previously.
Alternatively: Delete the SET file! Yes, this is stated in the above introduction, but is particularly relevant with this problem.
Alternatively: Download and run 3D Analyze. Use this program to force Vice City to run in windowed mode. Resolution should now be able to be changed without problems. Change it as desired - this new resolution will function when the game is next run normally (i.e. without 3D Analyze). This process may have to be repeated for every resolution change desired. Source.
http://www.gtaforums.com/index.php?showtopic=188753