Metimbo,
I am "pretty" sure that what you are doing is stretching the resolution to your monitor.
What I mean by this (And it happens mostly on laptop displays) is a screen can only handle a certain refresh rate normally. If you set it higher in XP, it will give you that display resolution, but extend it past the edges of your actual screen, so when you move the mouse around, you see the rest of it. You can look for an option I believe called Virtual Desktop or Display, but if not, then you are most likely running at say 1024x768 on a screen that can only handle 800x600 real format. I have seen both ways, where you can turn off the option, and the screen stays at your resolution and fits to screen, and have seen it not work at all until you drop it to its intended resolution.
Are you using a laptop by chance?
Guardian.