A user known as ultraneonoirantihero took it upon themselves to try and crack the problem of running Grim Fandango in a higher resolution... and in widescreen!
Watch the video for yourself!
Update: ultraneonoirantihero has explained how they put the video together in the Residual forums. It was actually all done in video editing software and PhotoShop (and not Residual), but it's still very impressive indeed! You may not immediately appreciate just how much work went into it, in fact. Take a look for yourself.