Stumpy: I wonder.. Perhaps you have an LCD screen and its "flat panel scaling" setting is set to "do not scale"? Check your NVIDIA Control Panel or Catalyst Control Center or whatever and see what the setting is.
Yeah, I think I'd read something about it on another forum how you can change the scaling option, but I cant find it anywhere (using NVIDIA Control Panel). I have a 7800 GT and flat panel (not widescreen) LCD.
This may be the solution:
http://forums.nvidia.com/index.php?showtopic=48946 But I reallly don't wanna go that route.
Edit: I found an option to toggle LCD scaling in the NVIDIA nView Desktop Manager, but it says its not LCD and can't do it? It is LCD though (LG Flatron L1510BF). =/