Why can't my computer change screen resolution

You didn't say which OS you're running. However, it looks like you need to restart your computer in safe mode. This URL explains how to get in safe mode. When the computer boots the video it will look a bit grainy and you won't be able to see the entire desktop without using the scroll bars.

Both XP and Vista don't allow you to perform such an operation through the regular procedure and, as a result, you will only be able to get a screen resolution of 800×600 with the consequence that some icons and programs won't be displayed correctly. This is because Safe Mode just loads only basic services and drivers which are strictly necessary for Windows to run.

Fortunately, by employing the following techniques, you can get around this restriction permitting you to get whatever screen resolution you want.

Windows XP:

1. Right click on your desktop.
2. Click Properties.
3. Click the Settings tab.
4. Under Screen Resolution, drag the pointer to the right (where higher resolutions are located).
5. Click Advanced.
6. On the new window click OK, without modifying anything.
7. Done, you should have successfully changed the resolution settings.

Windows Vista:

1. Right click on your desktop.
2. Click Personalize.
3. Click Display Settings.
4. Under Resolution, drag the pointer to the right (where higher resolutions are located).
5. Click Advanced Settings.
6. On the new window click OK, without modifying anything.
7. Done, you should have successfully change the resolution settings.

Your PC video resolution feeding the monitor is too high, you need to set your PC video resolution to the native resolution of this monitor: 1024 x 768 @60Hz.

Resolution: http://www.fixya.com/support/r4873371-fixing_out_range_format_not_supported

Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

Native resolution: 1680 x 1050 @60Hz
Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

Basic LCD monitor and TV troubleshooting guide:
http://www.fixya.com/support/r6150077-basic_lcd_monitors_troubleshooting
http://www.fixya.com/support/r5093881-lcd_flat_panel_tv_troubleshooting_guide
http://www.fixya.com/support/r7406380-tv_training_manuals
Failed TV and Monitors pictures: http://s807.photobucket.com/albums/yy352/budm/

Learn about bad caps: http://en.wikipedia.org/wiki/Capacitor_plague

Capacitors kit: http://lcdalternatives.auctivacommerce.com/ he can make you a set of caps for you.
Or www.digikey.com just make sure to use caps with low ESR, 105c, high ripple current, long life rating such as PANASONIC FM or FC series.

You cannot do it at the PC? Are you running WINDOWS 7?
You may want to look at WINDOWS 7 compatibility:
http://www.microsoft.com/windows/compatibility/windows-7/en-us/Default.aspx?type=Hardware

Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

Are you saying that the 1280*1024 @60Hz is not availabel at the display property on the PC?
Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

Unless there is problem inside the monitor, you should try this monitor on another PC to see if the resolution can be set at another PC.

Basic LCD monitor and TV troubleshooting guide:
http://www.fixya.com/support/r6150077-basic_lcd_monitors_troubleshooting
http://www.fixya.com/support/r5093881-lcd_flat_panel_tv_troubleshooting_guide
Failed TV and Monitors: http://s807.photobucket.com/albums/yy352/budm/

Learn about bad caps: http://en.wikipedia.org/wiki/Capacitor_plague

Capacitors kit: http://lcdalternatives.auctivacommerce.com/ he can make you a set of caps for you.
Or www.digikey.com just make sure to use caps with low ESR, 105c, high ripple current, long life rating such as PANASONIC FM or FC series.

Resolution setting is done at the PC, not at the monitor.
Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

Basic LCD monitor and TV troubleshooting guide:
http://www.fixya.com/support/r6150077-basic_lcd_monitors_troubleshooting
http://www.fixya.com/support/r5093881-lcd_flat_panel_tv_troubleshooting_guide

Learn about bad caps: http://en.wikipedia.org/wiki/Capacitor_plague

Capacitors kit: http://lcdalternatives.auctivacommerce.com/ he can make you a set of caps for you.
Or www.digikey.com just make sure to use caps with low ESR, 105c, high ripple current, long life rating such as PANASONIC FM or FC series.

Try these:
Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

You need to set your PC video resolution to the native resolution of this mointor: 1280 x 1024 @60Hz

Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

You change the resolution at the PC, not at the monitor.
Resolution adjustment:
From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7

From Microsoft: http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/display_change_screen_resolution.mspx?mfr=true

and here:
http://www.helpwithpcs.com/tipsandtricks/changing-screen-resolution-win-xp.htm

and here:
http://www.videojug.com/film/how-to-change-screen-resolution-in-windows-xp-and-windoiws-7