Quote from lilboy716:
i dont think it can run at that screen resolution. its not even one of the standard resolutions winxp would support
The resolutions supported is dependent on the graphics card you have. XP has nothing to do with this.
Most newer cards can support this high resolution in question. The older ones, 3+ years old, can do only 1920x1200.
Higher resolution gives you more texture, finer details. Increase the font size and icon size, and you should be fine. Don't reduce the resolution, LCD should be run at native resolution for best quality.