I have a Compaq Evo N600c laptop. This document says the max resolution of my monitor is higher than the 1024x768 it currently is set at.
I am running Windows 7 32-bit. If I right-click on my desktop and go to screen resolution, it will let my go higher than 1024x768. If I try a higher resolution, it keeps my screen the same size, but gives me a larger "virtual desktop". I believe it is Windows not knowing that my monitor goes higher than 1024x768.