I posted a procedure in the Fallout forum that fixed all the problems I had with Fallout in order to make it run smoothly under Win 7 64-bit. I found another mod and procedure that also Fixed Fallout 2 to run smoothly under Win 7 64-bit.
One important note is that once this "Fallout 2 Restoration Project" procedure is applied, any old saves won't work any longer, You will have to start a new game. So it's better applied before you start playing.
Here's the procedure:
1. Download "Fallout 2 Restoration Project" (Windows installer) from this location:http://www.nma-fallout.com/forum/viewtopic.php?t=56087
2. copy the file to your Steam Fallout folder:
example path: Program Files (x86)\Steam\SteamApps\Common\Fallout2\
3. Run the file and follow it's installation directions.
4. Start Fallout2 from Steam.
5. Select the "options" screen.
6. Next to the words "Game preferences" at the top left of the options screen there is a button called "Scan". Select it.
7. Change the "Colours" toggle switch to "16-bit" (very important).
8. Set the resolution desired and select "done".
9. Restart Fallout 2 and enjoy. ;)
Fallout 2 Restoration Project is a mod to the original game, however it's very well done and stays faithful to the original story and gameplay (the changes are mainly subtle and for the better).
It's very important you don't apply any other patches or mods other than the Fallout 2 Restoration Project. It has all the proper patches and resolution mods built-in and any other patches or mods will glitch it.