Let's assume you're installing graphics drivers under Windows XP. (The version of Windows makes a difference.)
Looks like one of two things happened when you installed the Nvidia drivers. (1) For some reason, the Nvidia installation failed because the driver could not initialize and the OS fell back to its own VGA driver. The 800x600x4 mode you describe is the default for that driver. (2) The installation succeeded, but for some reason the Nvidia driver could not detect the capabilities of your monitor and so it fell back to what it regards as the safest possibility, 800x600x4. All you should have to do in this case is set the display properties to the desktop mode you prefer.
Possibility (2) is just a guess on my part, since I don't know how the Nvidia drivers actually behave under the circumstances you describe. But you can rule out this possibility by looking at the Windows XP Device Manager: My Computer->Properties->Hardware->Device Manager->Display Adapters. If Device Manager has attached a yellow warning icon (!) to your 9800GT after installation and reboot, then the driver installation did not succeed.
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