How to set resolution higher than 1024x768 in Windows 7
From fit-PC wiki
By default the Windows 7 display driver duplicates the display on LVDS and SDVO outputs thus limiting resolution to 1024x768.
To allow for higher resolutions
- Right click on desktop and select Screen resolution
- In Multiple displays select Show desktop only on 2 and press Apply
- Under Resolution select the desired resolution out of the ones your display supports.