This fix may work for other versions of Windows as well. This works with the physical release of Ski-Doo X-Team Racing. The fix is simple change the compatibility settings to Windows 98 and "run this program as an admin". You'll need to edit the config file in (YOUR DRIVER LETTER):\Program Files (x86)\Daydream Software\Ski-Doo X-Team Racing.
Change the following lines:
(Warning) Do not go any higher the 1280x720 for me it didn't work it just stretched the screen in 640x480.
Here is some screenshots: