It may be a driver problem. If you installed the monitor and used the "plug and play" method of letting Windows install a generic monitor driver, you will suffer loss at higher resolution. Either install the driver that came with your new monitor or, better yet, go to the manufacturer's web site and download the most current drivers. Additionally, drivers meant to be used on Windows versions earlier than Windows 7 may not function under the new OS. Again, go to the manufacturer's site and make sure to download the drivers specifically for Windows 7. I have cured many high-res monitor problems merely by ditching the "plug and play" drivers and using the maker's version.
Also, you may want to update your graphics adapter drivers at the same time, making sure that you are using the Windows 7 version. Good luck on your efforts.
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