This question is an exact duplicate of:
I want to set up a system with two displays connected. One display will be a 22inch monitor with a native resolution of 1920x1080. The other display is a 19inch display native resolution 1024x768.
I want to clone the 1920x1080 display on to the 1024x768 display.
I have tried this and the 1080p image is squashed on to the smaller display. Is it possible to set it up such that rather than squashing the image, I can get the smaller display to use a virtual resolution of 1920x1080 and pan the display?