I was curious so I tested it on a clean install and it certainly works with LB2.
Corrects the 'broken cockpit' and 'bouncy clouds', at least on my computer.
Graphically it doesn't have quite as clean a look to the models as dGV. I personally didn't notice too much difference with framerate between the two. I did notice that if you exit a mission back to desktop nGlide will cause 'program has stopped responding' error but as you are exiting back to desktop anyway I'm not sure how much of an issue that would be.

Intel Core2 Quad CPU @ 2.66
VISTA (64-bit)SP2
ATI Radeon HD 4800 Series
Creative SB X-FI
Saitek X-45