OK well you really do have a problem, and I wonder if the only way you will be able to resolve it, will be to increase your Video resolution, even higher, you should be able to use 1080, or 720, via the HDMI, which is natively a very high resolution system. However I feel that you will need to "Tailor" the screen size & aspect ratio for the receiving unit. Often on the TV there are controls that will alter the screen settings, resoloution, aspect ratio,width, etc, (Check your manual) some can alter the image regardless of the "Input" factors. If you cannot do this, then perhaps it may pay you to investigate "Other" softwares that perform the same functions but enable more control over the image size etc.
manual link below.
http://esupport.sony.com/US/perl/model-documents.pl?mdl=KV32HS500
You say you have downloaded the VGA driver? By this I presume you are indicating that you have DLed and installed the Video driver for you brand of Video card, from the card manufacturers website, (Or similar) this indeed is important,as ONLY those drivers will allow access to any "Special" settings of features that would NOT be available when using Windows generic drivers. Also ensure you have the latest drivers too.
It maybe that you will have to output in a lesser format, say Composite,or Componet? If you have that available,or perhaps use a converter?
There are "After market" software that will allow one to "Tweak" the output to the screen, see links below.
You didn't indicate the manufacturer, so i have included both NVIDIA & ATI, software.
http://www.digital-digest.com/dvd/nvidia/tvout.html
http://downloads.guru3d.com/download.php?det=733
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