Civilization II: Fantastic Worlds is 16-bit, so it won't run natively on Windows 7. But it has a nifty feature that is probably unusual for Windows 3.1 games; it can run at pretty much any resolution your system supports. I've found that resolution support in Windows 3.1 as emulated by DOSBox is rather inflexible; I can get 1280x1024 working, but it requires restarting, seems to cause problems in fullscreen with the mouse getting stuck, and it's a far cry from my max res of 1920x1200.

Here's what I would like to do:
Get a Windows 9x virtual machine set up
Install Civ2 on to it
Back up the VM, VHD, and Civ 2 ISO to an external hard drive
In the future whenever I feel like it, retrieve the backed up file, load the VM, switch it to my monitor's native resolution (whatever it happens to be), and play Civ 2.

Would an unofficial build of DOSBox be suitable for this project? Here's the main features I'm looking for:
Decent Win9x support (preferably Win98SE)
Arbitrary VM desktop resolutions
Redbook audio
Smooth playback of Indeo encoded FMV
Portability (as in portable apps, not necessarily portable code)

I know DOSBox does the last three well. It's my understanding that 0.74 doesn't do the first two so well, but I know very little about the unofficial builds out there.