In revision r73708 the menu selection does work correctly now in Paperboy. Double clicking the paperboy menu executable launches the selector, and the game does start in the video mode that you have selected. However selecting the Tandy video option causes rather bad screen corruption.
In further testing, launching it from a command prompt window and selecting the Tandy video option and using the game menu blind to exit it the command prompt window remains completely black.
Two logfiles have been attached.