Dual monitor configuration

I just bought a 2nd monitor

Windows XP SP 3
Nvidia GeForce 7300 SE/7200 GS

My first monitor is plugged into a vga port
my 2nd monitor is plugged into a DVI port. I do not have 2 vga ports.

right click desktop
properties -> settings

Instead of seeing the standard for configuring two windows as shown here:

http://www.microsoft.com/windowsxp/using/setup/hwandpro...

In the popup I see
Display
(Default Monitor) on Nvidiea GeForce 7300 SE/7200 GS

Nothing in here on configuring 2 Display.

I go to the nvidia control panel. This tool does not have the same option as windows, where I treat my displays like 2 different monitors. I can make it horizontal, vertical, or clone.

The problem with this is:

1. have a 24 inch monitor and a 27 inch monitor and I want 2 different settings
2. When I expand, the display expands to fill up both windows. With the standard windows dual monitors, if I expand in 1 monitor, it just fills up that one monitor.

How do I change this? Looks like the control panel is over riding the windows management?