Windows NT driver failure is most likely a device conflict...
If your Windows NT 4 video does not load and reverts back to the standard VGA driver, then it is most likely a device conflict in Windows NT 4 (remember Windows NT 4 is not the most plug and play OS on this planet). Check the Event Log to see if any video failures occurred for the PrlVideo device. For instance I got the following Event Log error because of a conflict with an existing device:
A conflict has been detected between two drivers which claimed two overlapping Io port regions. Driver alcxnt, with device <\Device\ALCWaveOut0.Translated>, claimed an IO port range with starting address in data address 0x28 and 0x2c, and length in data address 0x30.
I disabled that device under the "Devices" applet under the Control Panel, rebooted and that solved the problem of the video not loading. The mouse still gets trapped by the guest OS, but the resolution works properly.