I also use 'widescreen = 1' there, but it's your choice to make. Open 'sr2.ini' and write your native resolution.
Rename its 'd3d8.dll' to 'd3d8.asi', copy the files to the game folder, and also place there the Ultimate ASI Loader (32 bit version) dll as 'dsound.dll' (renamed from 'dinput8.dll'). If you want to play in good 16:9 (with no clipping/culling), get the aspect ratio mod by nemesis2000. This time my F4 aspect ratio mod is not used by default. Download this file and extract its contents in the 'Legacy of Kain Soul Reaver 2' folder, where 'sr2.exe' is. I tried to unstretch prerendered cutscenes, but that corrupted the HUD graphics (even without modifying the aspect ratio). Changed the default frustum setting in the game profile. Fixed 'layer' was making 3D broken at normal convergence levels. The fix needs dgVoodoo to convert DX8 into DX11.
It includes an aspect ratio mod, but there's a better method that I'll explain. 3D Vision fix for Legacy of Kain: Soul Reaver 2.