Still think its a driver issue. To try and prove it - do the following :
Start >settings >control panel
double click on display > settings tab
How many colours is the display running in?
ie the 'colour quality'
16? 256? or 16bit etc.
If its on 16 and you can't select anything higher then its definately the driver.
If you can change the colour setting & the resolution, ie higher than 640x480 - then maybe its not.
Let us know.....
