Hi there! Welcome to the forums.
I think a GPU ugprade is in order. You should have the monitor set at it's native resolution, because it will always give the best image.
Have you messed with DPI settings? This will keep the resolution the same but enlarge the appearance of everything. I'd look into it.
You definitely need a new GPU for gaming at 1080p.
What is your CPU? What about RAM? Have you thought about popping in an SSD?
Sorry to bombard you with questions.
Hope this helps!