I have some good news for a change. I intially started using VDMSound and was having a lot of trouble with crackling and popping with sound. I solved my issues by doing the following (this has been tested with Blood and Duke3D. Should work on other games.):

Reduced DMA timing to 2-10.
Increased buffer to 150.
Enabled CLI-etc work around.
Changed to Wave-Out, rather than Directsound.
Supplimented the CLI work around with CLI2NOP to remove further occasional stuttering.

Works nearly perfected except for one small issue: For some reason, when I hold down a key, if I hold it for too long, once I release it it still seems to be capturing key strokes. I bet it has something to do with typematic settings, which I'm going to be toying with.

(Update: Still having input problems. It doesn't seem to like it when you hold more than two keys down at a time, as it makes it do wonky things.)

This set up doesn't seem to be working with OMF, but OMF also has a weird front end. The actual program file probably needs to be patched with CLI2NOP, but I can't figure out which one it is.