You probably need to apply the correct widescreen patch.
It doesn't work natively.
Looking at gameplay videos of New York Minute it seems the dot has always been that small. The X-box version's resolution of 480p (?) made it look huge, but I guess the PC version was just that small.
The widescreen hack has given me "facial snakes"/blurring screen with the faces of enemies snaking around if I move my movement when the resolution was sort of stretched but okay in the base version. Dunno if I want to play it with this hack on with something like that kinda breaking the "immersion" for me, but the widescreen itself makes things pretty crystal clear which is amazing.