Actually, your problem is most likely related to the refresh rates you're using. A 21" monitor should be able to do 1024x768 at something insane like 85Hz. If you run it at the default 60Hz, the monitor won't display the image correctly (might be why you had to do so much adjustment in the base case). Under your display properties, make sure you're using the "Optimal" refresh rate for your monitor (and make sure you're not using "Default Monitor"). In theory Windows should interpret "Optimal" as "consult the driver every time I switch resolutions and pick the best one". This should extend to 3-D modes as well.
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