Midtown Madness 2 can work nicely with widescreen without stretching or cropping some top and bottom (also known as VERT-, Midtown Madness 2 is HOR+).
The problem is that Midtown Madness 2 will not list widescreen resolutions above 1440x900 and this is where is the tool is useful, especially cause LCDs run best at their native resolution.
This tool adds the common widescreen resolutions:
1280x720 (16:9 - HDTV 720i/p)
1280x800 (16:10 - typically found in laptops)
1440x900 (16:10 - typically found in 17"-19" widescreens)
1680x1050 (16:10 - typically found in 20"-22" widescreens)
1920x1080 (16:9 - HDTV 1080i/p)
1920x1200 (16:10 - typically found in 24"+ widescreens)
2560x1600 (16:10 - typically found in 30"+ widescreens)
The tool works by editing your gfxconf.dat file, a file that stores the display settings used by Midtown Madness 2 and adds the resolutions listed above to your game.