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Since "upgrading" to windows 8.1 from Windows 8 I have had a problem with the resolution of IWD.

I am using the widescreen mod and was always able to set the resolution to 1280x800, which was a good size when running fullscreen on my 15" laptop.

However, since moving to 8.1 I find that when I launch IWD my display stays at native resolution and instead of being full screen the 1280x800 pixels of the game are displayed in the top right corner of the screen. This makes the game impossible to play because my screen's native resolution is 2880x1800---making the game tiny.

Does anyone have a fix for this issue?
I am having similar problems since upgrading my Dell XPS 12 to Windows 8.1.

Before Windows 8.1, the game would scale when playing full screen so that it looked bigger and filled most of the screen. Now it doesn't scale anymore and I get black borders around a very tiny game area.
I had this issue as well. I have an HP laptop with an AMD processor and on-board graphics. After upgrading to 8.1, the AMD control center no longer functioned as it was supposed to and the screen resolution could not be changed and it was set to 1024 x 768, below what the default should have been. HP released a new driver, which I downloaded and installed, the AMD control center was back to its normal function with the exception of being able to choose GPU scaling. The screen resolution was back to 1366 x 768, but the game would not scale up. So, I had to download the widescreen mod and set the game resolution to 1366 x 768, which worked and is now filling the full screen on my 15 inch laptop.

The date of the upgrade on the HP site for the AMD processor was November 11th.

I had to install the widescreen mod for Baldur's Gate 2 as well. I'm guessing it is the same fix for all of the Infinity Engine games.