THAT is wayyyyyy to LOW for a screen these days (hence why Windows is complaining). Normally laptops are widescreen so they don't do the old school '800x600' or '1024x768', the signal would distort for the widescreen too much. You normally have 1366x768, 1440x900, sometimes 1600x900, but normally 1920x1080 on better model laptops. I would trying to put it at the highest setting, not lowest setting.
Is there a reason your trying to put it so low? Are you trying to increase the size of the icons or letters on the screen to be easier to read? If so simply right click the desktop, select Personization, then lower left corner Ease of Access Center and you will see "Make the computer easier to see" and you can work through how to make the display 'easier to see'.