Been relatively online absent but update today: Got Reshade working with Virtual On's PC port which is my preferred port to play of it rather than emulating it! It makes me so happy!! I wanna adjust the settings a bit BUT!!! The current settings do blend the fake transparency into looking like real transparency so that rules.
... in the game the transparency is actually handled via dithering rather than transparent colors. This would I assume be blended on most monitors at the time of the 1997 PC port.